This paper investigates how a random supply can influence management decisions under pull and push contracts in a decentralized supply chain with one supplier and one retailer. We suppose that the supplier faces yield uncertainty, and we adopt game models to analyse the supply chain members’ decisions (i.e., wholesale price and order quantity) under the two commonly used contracts. Specifically, we analyse the revenue sharing mechanism and buyback mechanism with pull and push contracts, respectively, and find that the buyback contract can efficiently coordinate the supply chain with push contract, while the revenue sharing contract cannot improve the performance with a pull contract. Then we design a modified revenue sharing contract that introduces a subsidy for excess inventory and shows that for the pull case, the proposed mechanism can coordinate the supply chain effectively. Finally, the analysis results are displayed intuitively by numerical cases.
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DOI : 10.1051/ro/2020011
Keywords: Supply chain management, uncertain supply, game theory, pull and push contracts, coordination mechanism
@article{RO_2021__55_S1_S647_0,
author = {Zhang, Wensi and Chu, Hongrui},
title = {Coordination for pull and push contracts in decentralized system with uncertain supply},
journal = {RAIRO. Operations Research},
pages = {S647--S672},
year = {2021},
publisher = {EDP-Sciences},
volume = {55},
doi = {10.1051/ro/2020011},
mrnumber = {4223114},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2020011/}
}
TY - JOUR AU - Zhang, Wensi AU - Chu, Hongrui TI - Coordination for pull and push contracts in decentralized system with uncertain supply JO - RAIRO. Operations Research PY - 2021 SP - S647 EP - S672 VL - 55 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2020011/ DO - 10.1051/ro/2020011 LA - en ID - RO_2021__55_S1_S647_0 ER -
%0 Journal Article %A Zhang, Wensi %A Chu, Hongrui %T Coordination for pull and push contracts in decentralized system with uncertain supply %J RAIRO. Operations Research %D 2021 %P S647-S672 %V 55 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2020011/ %R 10.1051/ro/2020011 %G en %F RO_2021__55_S1_S647_0
Zhang, Wensi; Chu, Hongrui. Coordination for pull and push contracts in decentralized system with uncertain supply. RAIRO. Operations Research, Tome 55 (2021), pp. S647-S672. doi: 10.1051/ro/2020011
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