An analysis of supply chain decisions with asymmetrical retailers : effects of disruptions and static service cost on coordination mechanism
Kebing Chen, Lei Yang, Yanxia Liu (2012)
RAIRO - Operations Research
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The risk of demand or production cost disruption is one of the challenging problems in the supply chain management. This paper explores a generalized supply chain game model incorporating the possible disruptions. We find that a nonlinear Grove wholesale price scheme can fully coordinate such a supply chain even when both market demand and production cost are disrupted. The nonlinear Grove wholesale price scheme has three sides to coordinate the decision behavior of the players. One...