Contracting with demand uncertainty under supply chain competition

Ai, Xingzheng; Chen, Jing; Ma, Jun

doi:10.1007/s10479-012-1227-x

Cited by 44 publications

(18 citation statements)

References 21 publications

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“…Moorth [10] compared the performance of the supply chain members with assumptions on various control modes and found that a decentralized structure became the equilibrium of chain-to-chain management. Under various competitive conditions on price and service, Ai et al [11] investigated the performance of both electronic and traditional supply chains, and designed a coordination mechanism. They found that the transfer payment contracts increased as the ordered quantity increased, while they decreased as the service level increased.…”

Section: Operational Decisions Of Competitive Supply Chainsmentioning

confidence: 99%

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Pricing Strategies for Competitive Water Supply Chains under Different Power Structures: An Application to the South-to-North Water Diversion Project in China

Fan²,

Yan

2018

Sustainability

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Abstract:Under two different power structures, where the supplier and the distributor, respectively, are modeled as the leader, this paper studies water pricing strategies in two competing water resources supply chains. We assume that each water supply chain consists of a risk-neutral water supplier and a risk-neutral water distributor. We build different decision models for two competitive water resources supply chains, derive the optimal decision strategies for the water supply chain members, and analyze how competition intensity affects these decisions. Analytical results show that when the supplier is the leader, its water wholesale price is always higher than that when the distributor serves as the leader. On the other hand, the retail price and the two supply chains' channel profits depend on the competition intensity, but are independent of the power structure. To illustrate the proposed models, we apply them to examine the water pricing strategies in the South-to-North Water Diversion Project in China. The results showed significant insights into the pricing strategies of water resources in different routes of this massive water diversion project.

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Section: Operational Decisions Of Competitive Supply Chainsmentioning

confidence: 99%

“…Then, the distributors set the retail water price to maximize their profits. According to the authors of [10,11], the profit function can be solved, and we can get the expressions for the profit function and expected profit function of the supply chain members.…”

Section: The Supplier As the Leadermentioning

confidence: 99%

Pricing Strategies for Competitive Water Supply Chains under Different Power Structures: An Application to the South-to-North Water Diversion Project in China

Fan²,

Yan

2018

Sustainability

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“…Recently, it has been discovered that double marginalization may create big challenges for the supply chain under multiple uncertainties, e.g., under both supply and demand risks, compared to the traditional supply chain (Li et al 2013). Also the required coordination contracts are much more complex under these multiple-uncertainty scenarios (Guler and Bilgic 2009;Ai et al 2012;Li et al 2013). Supply chain contracting is a useful measure to mitigate supply chain risk and to achieve Pareto improvement.…”

Section: Supply Chain Contracting and Coordinationmentioning

confidence: 99%

Innovative supply chain optimization models with multiple uncertainty factors

Choi

Govindan

et al. 2017

Ann Oper Res

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Uncertainty is an inherent factor that affects all dimensions of supply chain activities. In today's business environment, initiatives to deal with one specific type of uncertainty might not be effective since other types of uncertainty factors and disruptions may be present. These factors relate to supply chain competition and coordination. Thus, to achieve a more efficient and effective supply chain requires the deployment of innovative optimization models and novel methods. This preface provides a concise review of critical research issues regarding innovative supply chain optimization models with multiple uncertainty factors. It also introduces the special issue's research papers and their respective insights.

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“…Customers' uncertain return behavior is not considered in all the above mentioned paper. Ai et al (2012) study revenue-sharing contract under supply chain competition and demand uncertainty. In Ru and Wang (2010), they use an exponential demand function, while in Wang et al (2004), they choose an iso-elastic demand curve.…”

Section: Literature Reviewmentioning

confidence: 99%

Benefit and risk analysis of consignment contracts

Wei

Wang

2015

Ann Oper Res

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Consignment contracts are widely implemented in virtual market. We consider a supplier produces product and sells it to market through a retailer by consignment contract. In a unified model assumption, considering random demand and customers' uncertain return behavior, we focus on two popular consignment contracts: vendor managed consignment inventory contract and consignment contract with revenue sharing. Comparing analytical results between the two contracts, we find that (1) the retailer and whole supply chain will benefit more from the consignment contract with revenue sharing, (2) the supplier will prefer to vendor managed consignment inventory contract, (3) both the retailer and supply chain will share a higher risk under the consignment contract with revenue sharing, the supplier's shares of risk and profit highly depend on his share of the total expected cost, (4) all the profit and risk functions are decrease in uncertainty of customer return. We believe that these managerial insights can advance the understanding about use of the two consignment contracts in supply chain management with both benefit and risk considerations.

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Contracting with demand uncertainty under supply chain competition

Cited by 44 publications

References 21 publications

Pricing Strategies for Competitive Water Supply Chains under Different Power Structures: An Application to the South-to-North Water Diversion Project in China

Pricing Strategies for Competitive Water Supply Chains under Different Power Structures: An Application to the South-to-North Water Diversion Project in China

Innovative supply chain optimization models with multiple uncertainty factors

Benefit and risk analysis of consignment contracts

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