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A supply chain coordination mechanism with suppliers’ effort performance level and fairness concern

Yong Liu, Dong-dong Wang and Qian Xu

Journal of Retailing and Consumer Services, 2020, vol. 53, issue C

Abstract: The interest conflict is an important factor affecting the supply chain (SC) performance, so it is very important to set up a reasonable coordination mechanism to eliminate the SC conflicts. Considering the fact that suppliers' effort performance level and fairness concern behavior are important factors affecting SC performance, we can develop SC models to analyze and compare SC decisions under the centralized decision and decentralized decision, and then we design a SC coordination mechanism through cost sharing. The results show that the designed coordination mechanism can effectively solve the conflict problem of SC, mobilize SC members’ motivation and initiative without damaging their profits, and realize the long-term cooperation between the retailer and multi-suppliers. It also can achieve the Pareto improvement and the sustainable development of SC.

Keywords: Coordination mechanism; Fairness concern; Effort performance; Pareto improvement; Cost sharing (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:53:y:2020:i:c:s0969698919301936

DOI: 10.1016/j.jretconser.2019.101950

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