Price competition, cost and demand disruptions and coordination of a supply chain with one manufacturer and two competing retailers

Xiao, Tiaojun; Qi, Xiangtong

doi:10.1016/j.omega.2006.02.008

Cited by 268 publications

(117 citation statements)

References 22 publications

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“…Several studies have been performed in a single sourcing environment [10][11][12]. Not considering alternative suppliers, the above papers tend to keep extra inventory to decrease the e ect of uncertainties on the supplier.…”

Section: Literature Reviewmentioning

confidence: 99%

A robust optimization approach for an inventory problem with emergency ordering and product substitution in an uncertain environment: A case study in pharmaceutical industry

et al. 2017

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Abstract. This paper presents a multi-product, multi-period inventory problem in an uncertain environment where the main suppliers are prone to yield uncertainty. In order to overcome the arisen uncertainties, two basic approaches of emergency ordering and product substitutability are taken into consideration. In the proposed emergency ordering scheme, two sets of suppliers, i.e. cheap unreliable and expensive reliable (emergency) suppliers, are considered and a tradeo between the cheap price of the main suppliers and reliability of emergency supplier is attained. In product substitution scheme, the demand of each product is ful lled directly by the related product or other substitute products. A riskaverse decision maker is taken into consideration whose risk-averseness level is controlled by the portion of demand which should be de nitely satis ed and not backordered or lost. A robust optimization approach with two variability measures is proposed to minimize the variability of the model. The results reveal the value of emergency ordering and product substitution. In addition, the results suggest which measure should be selected according to the decision maker's attitude toward the desired pro t, variability, and service level.

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Section: Literature Reviewmentioning

confidence: 99%

A robust optimization approach for an inventory problem with emergency ordering and product substitution in an uncertain environment: A case study in pharmaceutical industry

et al. 2017

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“…3. Many focused on the use of other kinds of coordinating contracts such as buyback, rebate, cost sharing, profit sharing discount models, option contracts and benefit sharing in multi-echelon SC problems (Cachon, Lariviere 2005;Yali, Zhanguo 2010;Chen, Zhang 2008;Cao et al 2007;Cachon, Lariviere 1999;Zhang, Huang 2010;Cachon, Lariviere 2001;Leng, Parlar 2009;Xiao, Qi 2008;Chen, Xiao 2009;Xiao et al 2007;Stein, Ginevicius 2010a;Stein 2010). 4.…”

Section: Literature Reviewmentioning

confidence: 99%

Leadership Selection in an Unlimited Three-Echelon Supply Chain

Jia

Mahdiraji

Govindan

et al. 2013

Journal of Business Economics and Management

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Abstract. Supply chain (SC) management aims to increase the overall profit through improvement of various activities and components. Many contradictions between parts and different levels of a SC have been identified in order to achieve overall objectives. Such shortfalls may result in decreased strength and competitiveness of the SC. This paper considers the main conflicts related to inventory, pricing and marketing costs in an unlimited three-echelon supply chain. Aimed at avoiding a profit decrease, the research focuses on finding an equilibrium between inventory, pricing and marketing cost of an unlimited three-echelon SC. On each level, the best leadership option with the greatest payoff is sought for between K retailer, M manufacturer and S supplier. According to Stackelberg non-cooperative game theory, each SC level can become a decision-making leader depending on the available negotiating power. Consequently, three leadership types are modelled on each level and the total SC profit is calculated and compared to ascertain the best option. The authors of the article found that transfer of leadership from a retailer to supplier results in reduction of the total profit. In addition, the research focused on the main effects of parameters used in leadership models. Finally, validation of the proposed model was examined by simulation and Arena software, which indicated that models based on a game theory were performed accurately.

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“…Clausen et al (2001) first applies the concept of disruption management to airline operations. Later, a number of papers in the field of supply chain management try to explore supply chain coordination schemes under disruptions, such as the wholesale price contract (Lei et al, 2012), quantity discount contract (Qi et al, 2004;Huang et al, 2006;Xu et al, 2006;Xiao et al, 2007;Xiao and Qi, 2008;Cao et al, 2013), buy-back contract (Hou et al, 2010), pricesubsidy rate contract (Xiao et al, 2005), revenue-sharing contract (Zhang et al, 2012). In addition to the above studies, Xiao and Yu (2006) investigate evolutionarily stable strategies of retailers and examine the effects of the demand and raw material supply disruptions on the retailers' strategies.…”

Section: Introductionmentioning

confidence: 99%

Supply chain performance under pull or push contracts in the presence of a market disruption

Wang

Fang

Liang

2016

Int Trans Operational Res

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Recently, market disruptions are more prone to emerging in supply chains. To investigate the impact of such a phenomenon on the performance of supply chain members and the entire supply chain, we consider a two-tier supply chain that consists of one manufacturer (he) and one retailer (she). The retailer orders products from the manufacturer and then sells them to a market in the presence of a potential market disruption caused by a random event. According to the timing of the retailer's order, we study two types of wholesale price contracts, that is, the pull contract (the retailer orders only during the selling season and the manufacturer bears the full inventory risk) and the push contract (the retailer only orders before the selling season starts and bears the full inventory risk). We derive the equilibrium wholesale prices, retail prices, production quantities, order quantities, and corresponding profits under each contract, respectively. By making a comparison between these two types of contracts, we find that when the potential market disruption is severe, the pull contract performs better than the push contract for the supply chain, while the push contract is more attractive for the supply chain when the potential market disruption is relatively mild. Moreover, the manufacturer always prefers the push contract, and the retailer always prefers the pull contract. We also show that the pull or push contract with revenue sharing can still coordinate the supply chain with the potential market disruption.

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Price competition, cost and demand disruptions and coordination of a supply chain with one manufacturer and two competing retailers

Cited by 268 publications

References 22 publications

A robust optimization approach for an inventory problem with emergency ordering and product substitution in an uncertain environment: A case study in pharmaceutical industry

A robust optimization approach for an inventory problem with emergency ordering and product substitution in an uncertain environment: A case study in pharmaceutical industry

Leadership Selection in an Unlimited Three-Echelon Supply Chain

Supply chain performance under pull or push contracts in the presence of a market disruption

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