Abstract
Under time-varying price, uncertain demand and uncertain response time, the ordering decisions were compared between the centralized supply chain and the decentralized supply chain. Based on in-depth analyzing the reasons of supply chain in-coordination, the combined contract of price discount share and markdown allowance based on time was proposed. The parameters of the combined contract were obtained through carefully designing the specific form of it. The mathematical derivation proves that the combined contract can realize Pareto optimization of supply chain with time-varying price and uncertain response time. Through a numerical study, we discussed how the change of the combined contract parameters would affect the decision results of supply chain. These discussions quantitatively characterize the value of the combined contract to supply chain coordination. We reveal some enlightenments guiding supply chain management practices in the paper.
| Original language | English |
|---|---|
| Pages (from-to) | 461-470 |
| Number of pages | 10 |
| Journal | Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice |
| Volume | 31 |
| Issue number | 3 |
| State | Published - Mar 2011 |
| Externally published | Yes |
Keywords
- Combined contract
- Response time
- Supply chain coordination
- Time-varying price