Coordination of Supply Chain with a Dominant Retailer under Demand Disruptions

We develop a coordination model of a one-manufacturer multi-retailers supply chain with a dominant retailer. We consider the impact of a dominant retailer on the market retail price and his sales promotion opportunity and examine how the manufacturer can coordinate such a supply chain by revenue-sharing contract after demand disruptions. We address the following important research questions in this paper. (i) How do we design an appropriate revenue-sharing contract to coordinate the supply chain with a dominant retailer without demand disruptions? (ii) When demand is disrupted with variations in market scale and price sensitive coefficient, can the original contract still be valid? (iii) How do the demand disruptions affect the coordination mechanism under different disruption scenarios and how should the new contract change? Finally, we generate important insights by both analytical and numerical examples

Price competition model in decentralized and centralized supply chains with demand disruption

Purpose: The paper studies the price competition of a supply chain with one supplier and two competing retailers under occasional demand disruption. Design/methodology/approach: The supply chain is either decentralized or centralized. The demand disruption for two retailers occurs with different probability. We analyze the effect of occurrence probability of demand disruption on the optimal prices of the supplier and two retailers. Findings: We find that the profits of supplier, retailers and supply chain are decreasing with the occurrence probability of demand disruption. Originality/value: It is helpful for supply chain members to adjust the original contracts to demand disruption.Peer Reviewe

Risk Decision for Dual-Channel Supply Chain of Agricultural Products Under Disturbance

This paper presents a decision analysis model for the dual-channel supply chain of agricultural products under the disturbance of emergency. Mean variance analysis tool and utility function risk tool are used to describe risk indicators in supply chain. In this study, retailer plays a leading role in agricultural supply chain. By means of the Kuhn-Tucker condition of the retailer’s maximum utility, the optimal price and optimal demand are obtained. The study also shows that risk averse retailer has higher wholesale price, lower retail price and greater supply as well as the demand for the pursuit of greater utility; Supplier has a certain robustness to the sudden event disturbance, when the disturbance is large, the quantity of initial supply quantity will be adjusted. The relationship between the demand change rate of the two channels and the market share of the channel is found. Finally, some numerical examples are presented to illustrate the results. The study provides a possible way of thinking in emergency decision analysis

Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand

Considering the market demand is stochastic and dependent on price, this paper shows that the revenue-sharing contract could coordinate a three-level supply chain consisting of one manufacturer, one distributor, and one retailer under normal environment. However, the original revenue-sharing contract cannot coordinate the supply chain under disruptions in circumstances of certain incidents leading to significant changes in market demand and causing additional deviation costs. To solve the problem, this essay introduces two improved forms of revenue-sharing contract: a mixed contract form based on a quantity discount policy and a pure form, which are characterized by antidisruption ability. The model of improved revenue-sharing contract is optimized when the market demand is in the additive form or in the multiplicative form with price dependent demand. Formulas are given to calculate the optimal contract parameters. Finally, this essay demonstrates the accuracy of the model of improved revenue-sharing contract with the help of numerical examples

Examining price and service competition among retailers in a supply chain under potential demand disruption

© 2017 Elsevier Ltd Supply chain disruptions management has attracted significant attention among researchers and practitioners. The paper aims to examine the effect of potential market demand disruptions on price and service level for competing retailers. To investigate the effect of potential demand disruptions, we consider both a centralized and a decentralized supply chain structure. To analyze the decentralized supply chain, the Manufacturing Stackelberg (MS) game theoretical approach was undertaken. The analytical results were tested using several numerical analyses. It was shown that price and service level investment decisions are significantly influenced by demand disruptions to retail markets. For example, decentralized decision makers tend to lower wholesale and retail prices under potential demand disruptions, whereas a proactive retailer needs to increase service level with an increased level of possible disruptions. This research may aid managers to analyze disruptions prone market and to make appropriate decision for price and service level. The manufacturer or the retailers will also be able to better determine when to close a market based on the proposed analysis by considering anticipated disruptions. The benefits and usefulness of the proposed approach are explained through a real-life case adopted from a toy supply chain in Bangladesh

Coordination of Decentralized Supply Chains: A Literature Review

Due to the fact that the double margin exists in the decentralized supply chain, many papers focus on the coordination of decentralized supply chain. In this paper, we classify these papers into three parts according to the structure of supply chain. The first kind of supply chain consists of one upstream supplier and one downstream retailer. The second one consists of multiple suppliers and a single retailer. The last one refers to the supply chain with multiple suppliers and a single retailer. This paper can enable readers to get the knowledge of existing research on supply chain coordination. We also give some interesting future research concerning this topic

Supply chain performance of the Australian beef industry: Comparing the industry structure, Inter-firm relationships and knowledge systems of Western Australia and Queensland

The meat and livestock industry in Australia accounts for more than 45 per cent of Australia’s total value of agricultural production, within which beef is the largest industry in value terms (Nossal, Sheng and Zhao 2008). But the industry is experiencing a long-term decline in terms of trade, and has lagged behind other industries in rates of productivity improvement (MLA 2008). As it is critical for the economy that the beef industry maintains profitability and sustainability, it is believed that the performance, competitiveness and success of the industry depends on improving cost efficiency and productivity of the whole supply chain in the industry. The main objective of this study was to investigate how the synergies of developing and utilizing ‘supply chain knowledge’, use of ‘inter-organizational systems (IOS)’, and competent ‘inter-firm relationship’ influence ‘supply chain performance’ and ‘competitiveness’ of the Australian Beef industry.https://researchlibrary.agric.wa.gov.au/books/1007/thumbnail.jp

Coordination Strategy of Dual-Channel Supply Chain for Fresh Product Under the Fresh-Keeping Efforts

In the context of high loss in the storage and transportation of fresh agricultural products, in order to help company make reasonable fresh-keeping decisions and reduce losses, we established a leading supplier of fresh agricultural products in two level dual channel supply chain model based on consumer utility function, and using Stackelberg game method to solve the optimal pricing and optimal fresh-keeping decision of fresh agricultural supplier and retailer under centralized decision-making and decentralized decision-making model. Research shows: (1) Under centralized decision-making model, the highest profit does not affect the cooperation and achieve complete coordination regardless of the bargaining power of the retailer; (2) High cost factor of fresh-keeping efforts makes supplier and retailer more inclined to lower prices to attract consumers. (3)The “revenue sharing + fresh-keeping cost sharing” coordination strategy provided by the supplier can increase the respective profits of both parties and achieve complete coordination of the dual-channel supply chain of fresh agricultural products

Information sharing in supply chains: a review of risks and opportunities using the Systematic Literature Network Analysis (SLNA)

Purpose – The purpose of this paper is to identify and discuss the most important research areas on information sharing in supply chains and related risks, taking into account their evolution over time. This paper sheds light on what is happening today and what the trajectories for the future are, with particular respect to the implications for supply chain management. Design/Methodology/Approach – The dynamic literature review method called Systematic Literature Network Analysis (SLNA) was adopted. It combines the Systematic Literature Review approach and bibliographic network analyses, and it relies on objective measures and algorithms to perform quantitative literature-based detection of emerging topics. Findings-The focus of the literature seems to be on threats internal to the extended supply chain rather than external attacks, such as viruses, traditionally related to information technology (IT). The main arising risk appears to be the intentional or non-intentional leakage of information. Also, papers analyse the implications for information sharing coming from " soft " factors such as trust and collaboration among supply chain partners. Opportunities are also highlighted and include how information sharing can be leveraged to confront disruptions and increase resilience. Research limitations/implications – The adopted methodology allows providing an original perspective on the investigated topic, i.e. how information sharing in supply chains and related risks are evolving over time due to the turbulent advances in technology. Practical implications-Emergent and highly critical risks related to information sharing are highlighted to support the design of supply chain risks strategies. Also, critical areas to the development of " beyond-the-dyad " initiatives to manage information sharing risks emerge. Opportunities coming from information sharing that are less known and exploited by companies are provided. Originality/value – This study focuses on the supply chain perspective rather than the traditional IT-based view of information sharing. According to this perspective, this study provides a dynamic representation of the literature on the investigated topic. This is an important contribution to the topic of information sharing in supply chains, which is continuously evolving and shaping new supply chain models

Developing lean and responsive supply chains : a robust model for alternative risk mitigation strategies in supply chain designs

This paper investigates how organization should design their supply chains (SCs) and use risk mitigation strategies to meet different performance objectives. To do this, we develop two mixed integer nonlinear (MINL) lean and responsive models for a four-tier SC to understand these four strategies: i) holding back-up emergency stocks at the DCs, ii) holding back-up emergency stock for transshipment to all DCs at a strategic DC (for risk pooling in the SC), iii) reserving excess capacity in the facilities, and iv) using other facilities in the SC’s network to back-up the primary facilities. A new method for designing the network is developed which works based on the definition of path to cover all possible disturbances. To solve the two proposed MINL models, a linear regression approximation is suggested to linearize the models; this technique works based on a piecewise linear transformation. The efficiency of the solution technique is tested for two prevalent distribution functions. We then explore how these models operate using empirical data from an automotive SC. This enables us to develop a more comprehensive risk mitigation framework than previous studies and show how it can be used to determine the optimal SC design and risk mitigation strategies given the uncertainties faced by practitioners and the performance objectives they wish to meet