Coordination mechanisms of a three-layer supply chain under demand and supply risk uncertainties

Giri, Bibhas C.; Majhi, Joyanta Kumar; Chaudhuri, Kripasindhu

doi:10.1051/ro/2020101

Cited by 12 publications

(6 citation statements)

References 37 publications

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“…In a three-level supply chain, they investigate how to establish supply chain coordination utilizing bilateral tariff contracts and zero wholesale price contracts vs. wholesale pricing contracts. Giri et al (2021) [29] investigated a single-product news vendor model, highlighting the significance of coordination in the face of supply and demand uncertainty, a scenario where raw materials are purchased without access to emergency resources from two unreliable sources (the main supplier and the backup supplier). To alleviate demand and supply concerns in the decentralized model, they recommended a price-only agreement and a new revenue-sharing agreement, noting that the latter may fully coordinate the supply chain and result in a win-win situation for all parties concerned.…”

Section: Review Of Revenue-sharing Contractmentioning

confidence: 99%

A Supply Chain Coordination Optimization Model with Revenue Sharing and Carbon Awareness

Kumari,

Rajoria,

Chauhan

et al. 2024

Sustainability

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The present study explores the impact of carbon emissions on supply chain coordination, where the supply chain entities are a retailer and a distributor. The study also involves two types of systems, namely centralized and decentralized. A centralized system computes the profit of the entire supply chain, including the profit of a retailer and a distributor, using the traditional optimization technique. In contrast, a decentralized system computes the profit of both a retailer and a distributor independently and uses the Stackelberg sequence for profit optimization. According to the Stackelberg sequence, one entity is considered a leader and the other a follower. When the profit in both systems is compared, it is found to be higher in the centralized system. So, to coordinate the system, a revenue-sharing contract is applied to coordinate the supply chain under a stock–time–price-sensitive demand rate. Finally, a carbon emission cost is implemented to the profits of both systems to make the model more sustainable. The main objective of the research is to optimize the profit of the supply chain by considering the concept of revenue-sharing contracts and making the system more sustainable through the implementation of carbon emission cost. The overall study concludes that the revenue-sharing fraction helps in coordinating the system and 0.4 is the value of the revenue-sharing fraction that perfectly coordinates the system. Due to this coordination, both the parties will gain profit, i.e., retailer and distributor, and this whole phenomenon increases the profit of the supply chain. A sensitivity analysis is also performed to check the stability of the model, and the model is found to be quite stable. A numerical example is illustrated, providing the result of the model.

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Section: Review Of Revenue-sharing Contractmentioning

confidence: 99%

A Supply Chain Coordination Optimization Model with Revenue Sharing and Carbon Awareness

Kumari,

Rajoria,

Chauhan

et al. 2024

Sustainability

View full text Add to dashboard Cite

show abstract

“…Therefore, this paper considers whether the two-part tariff contract can still coordinate the supply chain under the uncertainty of supply and demand. Giri [12] considers a newsvendor model for a single product to focus on the importance of coordination under demand and supply uncertainties where the raw materials are procured from two unreliable suppliers (the main supplier and the backup supplier) without any emergency resource. They propose the price only contract and a new revenue sharing contract to mitigate demand and supply uncertainties in the decentralized model, and observe that the revenue sharing contract can fully coordinate the supply chain with win-win outcome for all entities involved in the supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

Design of risk sharing and coordination mechanism in supply chain under demand and supply uncertainty

Liu

2022

RAIRO-Oper. Res.

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Perishable and short-life products can be seen everywhere in life. Due to the particularity of these products, they are more complicated in supply chain management. This paper studies whether the two-part tariff and ZRS contract can achieve the purpose of reducing risks and coordinating supply chain. We assume that market demand and supplier yield are uncertain, and we use game theory and probability distribution for research. The research results show that when the information is asymmetric, the manufacturer always ignore the demand forecast information provided by the retailer under the wholesale price contract. When the demand is uncertain, regardless of whether the information is symmetric or asymmetric, the two-part tariff contract and the ZRS contract can coordinate the supply chain and achieve maximum profit. When the retailer's degree of risk aversion is high, the ZRS contract is better than the two-part tariff, which can reduce the risk of retailers and achieve the purpose of coordinating the supply chain. When the supply is uncertain, the manufacturer can provide the supplier with a risk-sharing contract, including the return price and the sharing ratio that meet certain constraints. Such a contract can effectively reduce the supplier's risk and realize supply chain coordination.

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“…Subsequently, Huang et al [46] explored in great depth the situation where demand and cost are disturbed at the same time. Giri et al [47] focused on coordination under demand and supply disruption in a three-layer SC. Huang et al [48] studied the price and inventory policy of the food SC with production disruption and controllable deterioration.…”

Section: Sc Disruptionmentioning

confidence: 99%

“…Proof of Proposition 5. Substituting Equations ( 45)- (47) into Equations ( 43) and ( 44), the optimal profit under the revenue sharing contract can be obtained as π…”

Section: Conflicts Of Interestmentioning

confidence: 99%

Achieving Resilience: Resilient Price and Quality Strategies of Fresh Food Dual-Channel Supply Chain Considering the Disruption

Liu

et al. 2022

Sustainability

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In the face of demand disruptions, dual-channel supply chains (SCs) that lack resilience may be more vulnerable. Reaching moderate SC resilience through coordination is essential for dealing with disruptions. This paper investigates the operation management of a dual-channel fresh-food SC (FSC) under disruption. The centralized and decentralized decision models propose joint quality efforts based on the consideration of quality preference and loss. From the perspective of SC resilience, we analyze how SC members can optimally make price, quality, and quantity decisions resiliently and robustly under the disruption of quality preference. The results show that (1) no matter the kind of decision model, considering quality preference disruptions can significantly increase the SC profit; (2) there is a resilience range in decisions with the influence of the disruption cost. The original optimal decisions in the resilience range are robust and sustain SC performance without change; and (3) the disruption significantly impacts offline channel retailers, who are at a disadvantage when competing with online channels. A centralized decision model can achieve higher profits and quality levels in response to demand disruptions. This paper extends the concept of resilience to the FSC and provides suggestions for fresh-food enterprises to conduct quality efforts and cope with demand interruption.

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Coordination mechanisms of a three-layer supply chain under demand and supply risk uncertainties

Cited by 12 publications

References 37 publications

A Supply Chain Coordination Optimization Model with Revenue Sharing and Carbon Awareness

A Supply Chain Coordination Optimization Model with Revenue Sharing and Carbon Awareness

Design of risk sharing and coordination mechanism in supply chain under demand and supply uncertainty

Achieving Resilience: Resilient Price and Quality Strategies of Fresh Food Dual-Channel Supply Chain Considering the Disruption

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