2021
DOI: 10.1051/ro/2021168
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Price negotiation and coordination in outsourcing supply chain under yield and demand uncertainties

Abstract: This paper considers the issues of pricing, lot-sizing decisions and coordination in a supply chain consisting of one original equipment manufacturer (OEM) and one contract manufacturer (CM). A Bayesian game accounting for asymmetric information is established to optimize the CM’s outsourcing price and the OEM’s selling price. A Stackelberg game incorporating yield and demand uncertainties is subsequently modeled to optimize the CM’s production quantity and the OEM’s order quantity. Finally, a shortage penalty… Show more

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