Supply chain (SC) coordination can be pursued by adopting a centralized or decentralized decision-making approach. The former option occurs when there is a unique decision maker in the SC, the latter when several independent actors make decision at the different SC stages. SC contracts are a useful tool to make the several SC actors of a decentralized setting behave coherently among each other, as if the chain were operated in a centralized fashion. In this paper, we propose a model of an SC contract aimed at coordinating a three-stage SC, which is based on the revenue sharing mechanism. This model allows the system efficiency to be achieved as well as it could improve the profits of all the SC actors, by tuning the contract parameters.

Supply chain coordination by revenue sharing contracts / Giannoccaro, Ilaria Filomena; Pontrandolfo, Pierpaolo. - In: INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS. - ISSN 0925-5273. - 89:(2004), pp. 131-139. [10.1016/S0925-5273(03)00047-1]

Supply chain coordination by revenue sharing contracts

GIANNOCCARO, Ilaria Filomena;PONTRANDOLFO, Pierpaolo
2004-01-01

Abstract

Supply chain (SC) coordination can be pursued by adopting a centralized or decentralized decision-making approach. The former option occurs when there is a unique decision maker in the SC, the latter when several independent actors make decision at the different SC stages. SC contracts are a useful tool to make the several SC actors of a decentralized setting behave coherently among each other, as if the chain were operated in a centralized fashion. In this paper, we propose a model of an SC contract aimed at coordinating a three-stage SC, which is based on the revenue sharing mechanism. This model allows the system efficiency to be achieved as well as it could improve the profits of all the SC actors, by tuning the contract parameters.
2004
Supply chain coordination by revenue sharing contracts / Giannoccaro, Ilaria Filomena; Pontrandolfo, Pierpaolo. - In: INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS. - ISSN 0925-5273. - 89:(2004), pp. 131-139. [10.1016/S0925-5273(03)00047-1]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11589/2105
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