Coordination of supply chains by option contracts: A cooperative game theory approach

doi:10.1016/j.ejor.2010.05.017

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	Coordination of supply chains by option contracts: A cooperative game theory approach
	Zhao, Yingxue 2,3; Wang, Shouyang 3; Cheng, T. C. E.1; Yang, Xiaoqi 4; Huang, Zhimin 5,6
	2010-12-01
发表期刊	EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
ISSN	0377-2217
卷号	207 期号:2 页码:668-675
摘要	Manufacturer-retailer supply chains commonly adopt a wholesale price mechanism. This mechanism, however, has often led manufacturers and retailers to situations of conflicts of interest. For example, due to uncertain market demand, retailers prefer to order flexibly from manufacturers so as to avoid incurring inventory costs and to be able to respond flexibly to market changes. Manufacturers, on the other hand, prefer retailers to place full orders as early as possible so that they can hedge against the risks of over- and under-production. Such conflicts between retailers and manufacturers can result in an inefficient supply chain. Motivated by this problem, we take a cooperative game approach in this paper to consider the coordination issue in a manufacturer-retailer supply chain using option contracts. Using the wholesale price mechanism as a benchmark, we develop an option contract model. Our study demonstrates that, compared with the benchmark based on the wholesale price mechanism, option contracts can coordinate the supply chain and achieve Pareto-improvement. We also discuss scenarios in which option contracts are selected according to individual supply chain members' risk preferences and negotiating powers. (C) 2010 Elsevier By. All rights reserved.
关键词	Supply chain management Cooperative game Option contract Negotiating power Channel coordination
DOI	10.1016/j.ejor.2010.05.017
语种	英语
资助项目	Logistics Research Centre of The Hong Kong Polytechnic University
WOS研究方向	Business & Economics ; Operations Research & Management Science
WOS类目	Management ; Operations Research & Management Science
WOS记录号	WOS:000281107200012
出版者	ELSEVIER SCIENCE BV
引用统计
文献类型	期刊论文
条目标识符	http://ir.amss.ac.cn/handle/2S8OKBNM/11040
专题	中国科学院数学与系统科学研究院
通讯作者	Cheng, T. C. E.
作者单位	1.Hong Kong Polytech Univ, Dept Logist & Maritime Studies, Kowloon, Hong Kong, Peoples R China 2.Univ Int Business & Econ, Sch Int Trade & Econ, Beijing 100029, Peoples R China 3.Chinese Acad Sci, Inst Syst Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China 4.Hong Kong Polytech Univ, Dept Appl Math, Kowloon, Hong Kong, Peoples R China 5.Adelphi Univ, Sch Business, Garden City, NY 11530 USA 6.Renmin Univ China, Sch Business, Beijing 100872, Peoples R China
推荐引用方式 GB/T 7714	Zhao, Yingxue,Wang, Shouyang,Cheng, T. C. E.,et al. Coordination of supply chains by option contracts: A cooperative game theory approach[J]. EUROPEAN JOURNAL OF OPERATIONAL RESEARCH,2010,207(2):668-675.
APA	Zhao, Yingxue,Wang, Shouyang,Cheng, T. C. E.,Yang, Xiaoqi,&Huang, Zhimin.(2010).Coordination of supply chains by option contracts: A cooperative game theory approach.EUROPEAN JOURNAL OF OPERATIONAL RESEARCH,207(2),668-675.
MLA	Zhao, Yingxue,et al."Coordination of supply chains by option contracts: A cooperative game theory approach".EUROPEAN JOURNAL OF OPERATIONAL RESEARCH 207.2(2010):668-675.