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1、BargaininginaTwo-StageSupplyChainThroughRevenue-SharingContractJingHouandAmyZ.ZengAbstractWefocusonabargainingproblembetweenonesupplierandoneretailerthatarecoordinatedbyarevenue-sharingcontract.Thesupplerisassumedtohavetheabilitytoinfluencetheretailer’sprofitbysettinghis/hertar
2、getinventorylevel,whichinturndeterminestheleadtime.Weexaminethecasesunderwhicheitherthesupplierortheretailerisdominantinthebargainingprocess.Thekeycontractparameter,theacceptablerangeoftherevenue-sharingfractionforthetwoplayers,andthemaximumamountofmonetarybargainspaceareobta
3、inedunderexplicitandimplicitinformation,respectively.Numericalillustrationsofthecontractsforvariousscenariosaregiventoshedmoreinsights.KeywordsDominanceandbargaining•Nonlinearoptimization•Supplychaincoordination•Supplycontracts1IntroductionRevenuesharingmechanismhasbeenapplie
4、dextensivelyinvariousindustries,suchasinternetservice(e.g.,HeandWalrand2005),airline(e.g.,Zhangetal.2010),andvirtualenterprises(e.g.,ChenandChen2006)–tonameafew,asanefficientvehicletoachievecoordination,becauseitisrelativelystraightforwardJ.Hou(*)BusinessSchool,HohaiUniversity
5、,Nanjing,Jiangsu211100,Chinae-mail:penguinhj@163.comA.Z.ZengSchoolofBusiness,WorcesterPolytechnicInstitute,Worcester,MA01609,USAe-mail:azeng@wpi.eduT.-M.ChoiandT.C.EdwinCheng(eds.),SupplyChainCoordinationunderUncertainty,347InternationalHandbooksonInformationSystems,DOI10.100
6、7/978-3-642-19257-9_14,#Springer-VerlagBerlinHeidelberg2011348J.HouandA.Z.Zengforthedecisionmakerstoimplementandmanagethecontract.Theprimaryobjec-tiveoftherevenue-sharingcontractistoalignthetwoparties’interestsandactionsbyhavingtheretailershareaportionofhis/herrevenuewiththes
7、upplier.Asaresult,thesupplier’seffortandwillingnesstocollaborateshouldincrease.Twodesirableoutcomesareexpectedfromtherevenue-sharingmechanism,namelyhigherprofitlevelfortheentirechain,anda“win-win”situationforeachchainmember.Theclassicproblemofarevenue-sharingcontractishowtodet
8、erminetherevenue-sharingfractionforbettercoordinationoutcomes.Thisco