Searching for the best profit-sharing allocation in multi-echelon supply chain

Nguyen Van Hop

European Journal of Industrial Engineering, 2023, vol. 17, issue 1, 148-167

Abstract: In this paper, we propose coordination procedures for a multi-echelon supply chain in which the appropriate profit-sharing rate is allocated for each supply chain member. The search process is first developed to maximise the total compromised profit of a two-member supply chain. From the achieved profit-sharing rate, the best ordering quantity is also determined. Then, a cascading procedure is also proposed for searching the best profit-sharing ratios for each member in the multi-echelon supply chain. Our proposed procedures are validated by comparing it with the fixed profit-sharing scheme. We have also investigated different scenarios to test the effect of demand variations on total cost at different profit-sharing rates. The obtained results are promising. [Submitted: 27 October 2020; Accepted: 22 January 2022]

Keywords: supply chain coordination; profit sharing; multi-echelon supply chain. (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=127749 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:eujine:v:17:y:2023:i:1:p:148-167

Access Statistics for this article

More articles in European Journal of Industrial Engineering from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().