 Competition and cooperation in a single-retailer two-supplier supply chain with supply disruptionJian Li, Shouyang Wang and T.C.E. Cheng International Journal of Production Economics, 2010, vol. 124, issue 1, 137-150 Abstract: Many retailers diversify their supply disruption risk by sourcing from multiple suppliers. While a retailer's sourcing strategy impacts the profit of the supply chain, the pricing strategies of suppliers influence all aspects of the supply chain. In this paper we investigate the sourcing strategy of a retailer and the pricing strategies of two suppliers in a supply chain under an environment of supply disruption. We characterize the sourcing strategies of the retailer in a centralized and a decentralized system. We derive a sufficient condition for the existence of an equilibrium price in the decentralized system when the suppliers are competitive. Based on the assumption of a uniform demand distribution, we obtain an explicit form of the solutions when the suppliers are competitive. Finally we devise a coordination mechanism to maximize the profits of both suppliers. Keywords: Supply; disruption; Non-cooperation; game; Cooperation; game; Supply; chain; coordination (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:124:y:2010:i:1:p:137-150 Access Statistics for this article International Journal of Production Economics is currently edited by Stefan Minner More articles in International Journal of Production Economics from Elsevier |
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