Supply chain coordination with a single supplier and multiple retailers considering customer arrival times and route selection

Ilkyeong Moon and Xuehao Feng

Transportation Research Part E: Logistics and Transportation Review, 2017, vol. 106, issue C, 78-97

Abstract: We address a novel decentralized supply chain with one supplier and multiple independent retailers based on the practice of several supply chains in the real world. Coordination of such a supply chain has rarely been studied. Despite overcoming the well-known double marginalization, the supplier’s route selection can obstruct supply chain coordination. We present a wholesale-price-and-carpooling contract to coordinate such a supply chain. We demonstrate supply chain coordination under such a contract and show that the profit along the supply chain can be arbitrarily allocated. We show that the popular revenue-sharing contract may lose flexibility in profit allocations.

Keywords: Supply chain; Profit allocation; Route selection; Carpooling (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.tre.2017.08.004

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