publication . Article . 2013

SUPPLY CHAIN COORDINATION WITH UNCERTAINTY IN TWO-ECHELON YIELDS

HONGJUN PENG; MEIHUA ZHOU; LING QIAN;
Open Access
  • Published: 01 Jan 2013 Journal: Asia-Pacific Journal of Operational Research, volume 30, issue 1, pages 1,250,044-1
Abstract
This paper researches the coordination models in the supply chain where there are uncertain two-echelon yields and random demand. We analyzed three contracts of revenue sharing (RS), overproduction risk sharing (OS), and combination of RS and OS (RO), and contrasted them with uncoordinated model. We studied the optimal order decision for downstream manufacturer and the optimal production decision for upstream manufacturer. Numerical examples were presented to illustrate the results. The study showed that the RS contract and OS sharing contract both have their advantages and disadvantages and the RO contract could benefit the whole supply chain best. We found out...
Subjects
free text keywords: Two-echelon yields, coordination model, revenue sharing, overproduction risk sharing
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