scholarly journals Supply Chain Coordination under Trade Credit and Quantity Discount with Sales Effort Effects

2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Zhihong Wang ◽  
Shaofeng Liu
Keyword(s):  
Supply Chain ◽  
Analytical Model ◽  
Hybrid Model ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Market Demand ◽  
Quantity Discount ◽  
Model Combining ◽  
Effort Effect

The purpose of this paper is to investigate the role of trade credit and quantity discount in supply chain coordination when the sales effort effect on market demand is considered. In this paper, we consider a two-echelon supply chain consisting of a single retailer ordering a single product from a single manufacturer. Market demand is stochastic and is influenced by retailer sales effort. We formulate an analytical model based on a single trade credit and find that the single trade credit cannot achieve the perfect coordination of the supply chain. Then, we develop a hybrid quantitative analytical model for supply chain coordination by coherently integrating incentives of trade credit and quantity discount with sales effort effects. The results demonstrate that, providing that the discount rate satisfies certain conditions, the proposed hybrid model combining trade credit and quantity discount will be able to effectively coordinate the supply chain by motivating retailers to exert their sales effort and increase product order quantity. Furthermore, the hybrid quantitative analytical model can provide great flexibility in coordinating the supply chain to achieve an optimal situation through the adjustment of relevant parameters to resolve conflict of interests from different supply chain members. Numerical examples are provided to demonstrate the effectiveness of the hybrid model.

scholarly journals Emergency Quantity Discount Contract with Suppliers Risk Aversion under Stochastic Price

Mathematics ◽  
2021 ◽  
Vol 9 (15) ◽  
pp. 1791
Author(s):  
Shuangsheng Wu ◽  
Qi Li
Keyword(s):  
Supply Chain ◽  
Risk Aversion ◽  
Value At Risk ◽  
Risk Measure ◽  
Supply Chain Coordination ◽  
Conditional Value At Risk ◽  
Market Demand ◽  
Step Size ◽  
Quantity Discount ◽  
Related Factors

This paper constructs an emergency quantity discount contract to explore the inherent law of the contract coordinating the supply chain with stochastic market demand and price and the risk-averse supplier. Meanwhile, the conditional value-at-risk (CVaR) risk measure criterion is revised to study the influence of supplier’s risk aversion attitude on supply chain coordination. The results show that supplier risk aversion will cause the bifurcation of the relevant factors in the supply chain under the stochastic price. Within the bifurcation region, the supply chain cannot be coordinated; out of the bifurcation region, the supply chain can achieve coordination. The supply chain related factors’ variation range in the bifurcation region is related to the step size of the risk aversion factor and the normal distribution function’s variance of the market demand, and it increases with the latter.

Research on the influence of relation embeddedness on innovation performance of manufacturing supply chain alliances using expert fuzzy rule –intermediary role of shared mental model

2021 ◽  
pp. 1-8
Author(s):  
Guo Lifang ◽  
Cui Yuwen ◽  
Wu Yamin ◽  
Ma Jiaqi
Keyword(s):  
Supply Chain ◽  
Mental Model ◽  
Fuzzy Rule ◽  
Innovation Performance ◽  
Market Demand ◽  
Shared Mental Model ◽  
Rule Based System ◽  
Manufacturing Supply Chain ◽  
Intermediary Role

The innovation and development of manufacturing supply chain alliance is an important way for enterprises to meet the increasing market demand and maintain the competitive advantage. From the perspective of embeddedness, the research model of relation embeddedness on innovation performance of manufacturing supply chain was constructed based on AMOS. Shared mental model was selected as intermediary variable to study the influence of relation embeddedness, shared mental model and innovation performance of manufacturing supply chain alliances. Expert fuzzy rule based system is utilized for measuring the performance of manufacturing supply chain alliances. The conclusion shows that relation embeddedness is significantly positive shared mental model and innovation performance. Shared mental model is positively affects alliance innovation performance and plays a part of intermediary role between relational embedding and alliance innovation performance. Practice implicates that enhance the level of relation embeddedness can promote the formation of shared mental model and improve the innovation performance of manufacturing supply chain alliance.

IT-Based Classification for Supply Chain Coordination Mechanisms

2013 ◽  
pp. 148-162 ◽  
Author(s):  
Fereshteh Ghahremani ◽  
Mohammad Jafar Tarokh
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Supply Chains ◽  
Supply Chain Coordination ◽  
Coordination Mechanisms ◽  
Effective Solution ◽  
New Classification ◽  
Role Of It

Managing dependencies via coordination is an effective solution for the problems that arise from these interdependencies in supply chains. This can be practical via a set of methods called coordination mechanisms. Numerous coordination mechanisms have been discussed before in literature. This paper develops a new classification of these mechanisms on the basis of information technology (IT) impact on them. This classification proves the important role of IT in better coordinating supply chains and help managers distinguish between coordination mechanisms that are created and improved by information technology and thus lead them to have the best choice based on their infrastructures and organization type.

scholarly journals The Incentive Model in Supply Chain with Trade Credit and Default Risk

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-11
Author(s):  
Hong Cheng ◽  
Yingsheng Su ◽  
Jinjiang Yan ◽  
Xianyu Wang ◽  
Mingyang Li
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Moral Hazard ◽  
Private Information ◽  
Default Risk ◽  
Trade Credit ◽  
Uncertain Demand ◽  
Market Demand ◽  
Incentive Contract ◽  
Risk Neutral

Trade credit is widely used for its advantages. However, trade credit also brings default risk to the manufacturer due to the uncertain demand. And moral hazard may aggravate the default risk. The purpose of this paper is to investigate the role of moral hazard in trade credit and explore incentive contract under uncertain demand and asymmetric information. We consider a two-echelon supply chain consisting of a risk-neutral retailer ordering a single product from a risk-neutral manufacturer. Market demand is stochastic and is influenced by retailer’s sales effort which is his private information. Incentive theory is used to develop the principal-agent model and get the incentive contract from the manufacturer’s perspective. Results show that the retailer will reduce his effort level to get more profit and the manufacturer’s profit will be reduced, in the case of asymmetric information. Facing this result, the manufacturer will reduce the order quantity in incentive contract to lessen his losses. Numerical examples are provided to illustrate all these theoretical results and to draw managerial insights.

scholarly journals Supply chain management of coffee commodities

2018 ◽  
Vol 197 ◽  
pp. 14003 ◽  
Author(s):  
Andri Ikhwana
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chain Coordination ◽  
Business Management ◽  
Quality Standards ◽  
Main Role ◽  
Chain Management ◽  
Basic Model ◽  
Supply Chain Configuration

This study is aimed at describing the supply chain management of coffee commodity and the role of each of its elements. This study based on the ineffectiveness and inefficiency of coffee commodity business management which involves some elements that caused supply chain for the commodity has not been formed according to the expectation which in turn required a supply chain management able to fix the problem. The supply chain management is described qualitatively using supply chain basic model supported by integrated concepts of supply chain relationship, supply chain configuration, and supply chain coordination. The result of the study reveals that the supply chain management in coffee commodities includes suppliers, gatherers/manufacturers, exporters, and consumers. The distributors play the main role in determining product standards. The relationships between each of supply chain elements have been well established, utilized to distribute the products, and used as a feedback medium if there is a change in quality standards required in accordance with the needs of consumers. To ensure the sustainability of business activities in the supply chain, mutual commitment among the supply chain elements is required especially when it comes to determining the product quality standards and quantity.

Supply Chain Coordination with Option Contracts in VMI System

2012 ◽  
Vol 482-484 ◽  
pp. 2131-2141
Author(s):  
Jian Zu Wu ◽  
Jin Liu
Keyword(s):  
Demand Uncertainty ◽  
Supply Chain Coordination ◽  
Market Demand ◽  
Option Prices ◽  
Market Uncertainty ◽  
Pareto Improvement ◽  
Option Contract ◽  
Two Parameters ◽  
Ordering Quantity

This paper focuses on the optimal option contract coordinating of ordering quantity and option prices between retailer and supplier in a VMI system under market uncertainty. The option contract is characterized by a dominant supplier with two parameters which are ordering price coand executive price cepaid by retailer. An option ordering price is paid by retailer for each additional ordering unit of product at the end of selling reason if realized demand is larger than retailer’s committed minimum ordering. An executive price plays a role of purchasing price for each unit of product if retailer set a second ordering. A successful coordination has been shown and a numerical analysis demonstrates that such an option contract brings a Pareto improvement to each party, especially to the retailer. At last, the analysis of market uncertainty effects on the profits of both sides illustrates that, as the increasing of market demand uncertainty, the retailer’s ordering quantity of options will increase but his profit will reduce, and supplier’s profit will add.

scholarly journals Three-level supply chain coordination of fresh agricultural products in the Internet of Things

2017 ◽  
Vol 117 (9) ◽  
pp. 1842-1865 ◽  
Author(s):  
Bo Yan ◽  
Xiao-hua Wu ◽  
Bing Ye ◽  
Yong-wang Zhang
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Agricultural Product ◽  
The Internet ◽  
Market Demand ◽  
Content Type ◽  
Revenue Sharing Contract ◽  
The Internet Of Things

Purpose The Internet of Things (IoT) is used in the fresh agricultural product (FAP) supply chain, which can be coordinated through a revenue-sharing contract. The purpose of this paper is to make the three-level supply chain coordinate in IoT by considering the influence of FAP on market demand and costs of controlling freshness on the road. Design/methodology/approach A three-level FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT is regarded as the research object. This study improves the revenue-sharing contract, determines the optimal solution when the supply chain achieves maximum profit in three types of decision-making situations, and develops the profit distribution model based on the improved revenue-sharing contract to coordinate the supply chain. Findings The improved revenue-sharing contract can coordinate the FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT, as well as benefit all enterprises in the supply chain. Practical implications Resource utilization rate can be improved after coordinating the entire supply chain. Moreover, loss in the circulation process is reduced, and the circulation efficiency of FAPs is improved because of the application of IoT. The validity of the model is verified through a case analysis. Originality/value This study is different from other research in terms of the combination of supply chain coordination, FAPs, and radio frequency identification application in IoT.

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