Capacity Coordination Mechanism for Supply Chain under Supply-Demand Uncertainty

Abstract

In consideration of the supply-demand uncertainty, this paper mainly discussed the capacity coordination of product service supply chain. Facing supply uncertainty, it built a subcontractor-supplier coordination model based on penalty contracts. It was found that if the subcontractor takes punitive measures, the benefits caused by the increased subcontract demand can offset the supplier's shortage loss. As to the demand uncertainty, we constructed a coordination model consisting of subcontractors and integrated service suppliers based on the benefit sharing contract. The results found that the integrated service suppliers' order quantity and the expected joined revenue of subcontractors and integrated service suppliers will increase. Besides, considering suppliers' shared capability information, we built a product service supply chain coordination model based on penalty-benefit sharing joined contracts. The results showed that the joined contracts can decrease the uncertainty of capacity supply and soften the impact of demand uncertainty, thus raising the whole benefits of the product service supply chain, and ensuring the benefit increase of all related enterprises.

In-Plant Logistics Simulation Model for the Catering Service Industry Towards Sustainable Development: A Case Study

“…Therefore, an increasing number of catering service providers tend to outsource their dishwashing activities by choosing a professional dishwashing service provider, which provides a centralized dishwashing service for the large amount of dirty tableware from restaurants, using their professional machines and human operations. However, facing an increasing amount of dirty tableware, the increasing labor force cost, and fluctuating labor supply, dishwashing service providers need to improve their operational performance by enhancing the labor force utilization rate and balancing the labor force cost and labor workload [13]. Given this consideration, this research explores the major challenges faced by dishwashing service providers towards the environmental development of this industry.…”