Coordination of Decentralized Supply Chains: A Literature Review

Nan ZHANG

Abstract


Due to the fact that the double margin exists in the decentralized supply chain, many papers focus on the coordination of decentralized supply chain. In this paper, we classify these papers into three parts according to the structure of supply chain. The first kind of supply chain consists of one upstream supplier and one downstream retailer. The second one consists of multiple suppliers and a single retailer. The last one refers to the supply chain with multiple suppliers and a single retailer. This paper can enable readers to get the knowledge of existing research on supply chain coordination. We also give some interesting future research concerning this topic.


Keywords


Supply chain; Demand uncertainty; Double margin; Coordination

Full Text:

PDF

References


Agrawal, V., & Seshadri, S. (2000). Risk intermediation in supply chains. IIE Transactions, 32(9), 819-831.

Barnes-Schuster, D., Bassok, Y., & Anupindi, R. (2002). Coordination and flexibility in supply contracts with options. Manufacturing & Service Operations Management, 4(3), 171-207.

Bernstein, F., & Federgruen, A. (2005). Decentralized supply chains with competing retailers under demand uncertainty. Management Science, 51(1), 18-29.

Burnetas, A., & Ritchken, P. (2005). Option pricing with downward sloping demand curves: The case of supply chain options. Management Science, 51(4), 566-580.

Burnetas, A., Gilbert, S., & Smith, C. (2007). Quantity discount in single-period supply contracts with asymmetric demand information. IIE Transactions, 39(5), 465-479.

Cachon, G. (2003). Supply chain coordination with contracts. In S. Graves & T. de Kok (Eds.), Handbooks in operations research and management science: Supply chain management. North Holland Press.

Cachon, G. (2004). The allocation of inventory risk in a supply chain: push, pull, and advance-purchase discount contracts. Management Science, 50(2), 222-238.

Cachon, G., & Lariviere, M. (2001). Contracting to assure supply: How to share demand forecasts in a supply chain. Management Science, 47(5), 629-646.

Cachon, G., & Lariviere, M. (2005). Supply chain coordination with revenue-sharing contracts: Strengths and limitations. Management Science, 51(1), 30-44.

Chen, H., Chen, J., & Chen, Y. (2006). A coordination mechanism for a supply chain with demand information updating. International Journal of Production Economics, 103(1), 347-361.

Corbett, C., & Groote, X. (2000). A supplier’s optimal quantity discount policy under asymmetric information. Management Science, 46(3), 444-450.

Eppen, G., & Iyer, A. (1997). Backup agreements in fashion buying-the value of upstream flexibility. Management Science, 43(11), 1469-1484.

Fu, H., Ma, Y., & Tang, X. (2013). Coordination of assembly supply chain with loss-averse suppliers. Control and Decision (Forthcoming).

Gan, X., Sethi, S., & Yan, H. (2005). Channel coordination with a risk-neutral supplier and a downside-risk-averse retailer. Production and Operations Management, 14(1), 80-89.

Gerchak, Y., & Wang, Y. (2004). Revenue-sharing vs. wholesale-price contracts in assembly systems with random demand. Production and Operations Management, 13(1), 23-33.

Gui, Y., Qin, L., & Zhang, T. (2011). A research into the supply chain coordination with supplier’s delay in payments and retailer’s sales effort. Economic Survey, 18(4), 91-95.

Güler, M. G., & Bilgic, T. (2009). On coordinating an assembly system under random yield and random demand. European Journal of Operational Research, 196(1), 342-350.

Gurnania H., & Gerchak Y. (2007). Coordination in decentralized assembly systems with uncertain component yields. European Journal of Operational Research, 176(3), 1559-1576.

Khouja, M., & Mehrez, A. (1996). A multi-product constrained newsboy problem with progressive multiple discounts. Computers & Industrial Engineering, 30(1), 95-101.

Kim, K., & Hwang, H. (1989). Simultaneous improvement of supplier’s profit and buyer’s cost by utilizing quantity discount. Journal of the Operational Research Society, 40(3), 255-265.

Kohli, R., & Park, H. (1994). Coordinating buyer-seller transactions across multiple products. Management Science, 40(9), 1145-1150.

Krishnan, H., Kapuscinski, R., & Butz, D. (2004). Coordinating contracts for decentralized supply chains with retailer promotional effort. Management Science, 50(1), 48-53.

Leng, M., & Parlar, M. (2010). Game-theoretic analyses of decentralized assembly supply chain: Non-cooperative equilibria vs. coordination with cost-sharing contracts. European Journal of Operational Research, 204(1), 96-104.

Li, S., & Hua, Z. (2008). A note on channel performance under consignment contract with revenue sharing. European Journal of Operational Research, 184(2), 793-796.

Linh, C., & Hong, Y. (2008). Channel coordination through a revenue sharing contract in a two-period newsboy problem. European Journal of Operational Research, 198(3), 822-829.

Liu, J., & Li, C. (2012). Research on stimulation effect of two government’s subsidy modes on enterprise and consumer. Management Science and Engineering, 6(3), 1-5.

Liu, J., & Qiu, G. (2011). Research on game of manufacturer and retailer under government’s subsidy. Management Science and Engineering, 5(3), 22-26.

Padmanabhan, V., & Png, I. (1995). Returns policies: Make money by making good. Sloan Management Review, 37(1), 65-72.

Pasternack, B. (1985). Optimal pricing and returns policies for perishable commodities. Marketing Science, 4(2), 166-176.

Plambeck, E., & Taylor, T. (2005). Sell the plant? The impact of contract manufacturing on innovation, capacity, and profitability. Management Science, 51(1), 133-150.

Qi, X., Bard, J., & Yu, G. (2004). Supply chain coordination with demand disruption. Omega, 32(4), 301-312.

Ren J., & Chen Q. (2009). Supply chain coordination with retailer trade credit. Industrial Engineering and Management, 14(2), 10-15.

Spengler, J. (1950). Vertical integration and antitrust policy. Journal of Political Economy, 58(4), 347-352.

Su, X., & Zhang, F. (2008). Strategic customer behavior, commitment, and supply chain performance. Management Science, 54(10), 1759-1773.

Suo, H., & Jin, H. (2004). Supplier’s optimal buy back decision under asymmetric information in a two-stage supply chain. Control and Decision, 19(3), 335-338.

Taylor, T. (2002). Supply chain coordination under channel rebates with sales effort effects. Management Science, 48(8), 992-1007.

Tsay, A. (1999). The quantity flexibility contract and supplier-customer incentives. Management Science, 45(10), 1339-1358.

Tsay, A., & Lovejoy, W. (1999). Quantity flexibility contracts and supply chain performance. Manufacturing & Service Operations Management, 1(2), 89-111.

Wang, J., & Wang, S. (2008). A coordination model on the manufacturer core supply chain under asymmetric information. Journal of Systems Engineering, 23(1), 60-66.

Wang, J., Zhao, R., & Tang, W. (2008). Supply chain coordination by revenue-sharing contract with fuzzy demand. Journal of Intelligent and Fuzzy Systems, 19(6), 409-421.

Wang, X., & Liu, L. (2008). A multi-supplier single-retailer supply chain coordination model with the retailer being dominant. Chinese Journal of Management Science, 16(5), 96-109.

Weng, Z. (1995a). Channel coordination and quantity discounts. Management Science, 41(9), 1509-1522.

Weng, Z. (1995b). Modeling quantity discounts under general price-sensitive demand functions: Optimal policies and relationships. European Journal of Operational Research, 86(2), 300-314.

Wu S., & Xu X. (2008). Incentive mechanism for two-echelon supply chain under asymmetric information. Computer Integrated Manufacturing Systems, 14(3), 519-524.

Wu, J. (2005). Quantity flexibility contracts under bayesian updating. Computer & Operations Research, 32(5), 1267-1288.

Xu, M. H., Qi, X. T., Yu, G., Zhang, H. Q., & Gao, C. X. 2003. The demand disruption management problem for a supply chain system with nonlinear demand functions. Journal of System Science and System Engineering, 12(1), 82-97.

Xu, Z., Zhu, D., & Zhu, W. (2008). Supply chain coordination under buy-back contract with sales effort effects. Systems Engineering―Theory&Practice, 28(4), 1-11.

Yan, X., Zhang, M., & Liu, K. (2010). A note on coordination in decentralized assembly systems with uncertain component yields. European Journal of Operational Research, 205(2), 469-478.

Yao, Z., Leung, S., & Lai, K. (2008). Manufacturer’s revenue-sharing contract and retail competition. European Journal of Operational Research, 186(2), 637-651.

Yao, Z., Zhang, L., & Cao, Y. (2012). Using revenue sharing contract to coordinate supply chain with a risk-averse retailer. SUNConferences, Computers and Industrial Engineering 42. Retrieved from http://conferences.sun.ac.za/index.php/cie/cie-42/paper/view/34/64

Ye, F., & Li, Y. (2006). Research on buy back contract mechanism for supply chain coordination with a risk-averse retailer. Industrial Engineering and Management, 11(2), 1-4.

Zhang, L., Song, S., & Wu, C. (2005). Supply chain coordination of loss-averse newsvendor with contract. Tsinghua Science and Technology, 10(2), 133-140.

Zhang, W., Fu, J., Li, H., & Xu, W. (2012). Coordination of supply chain with a revenue-sharing contract under demand disruptions when retailers compete. International Journal of Production Economics, 138(1), 68-75.

Zhang, X., Ou, J., & Gilbert, S. M. (2008). Coordination of stocking decisions in an assemble-to-order environment. European Journal of Operational Research, 189(2), 540-558.

Zhou, Y., & Yang, S. (2006). Pricing coordination in supply chain based on asymmetric demand information. Journal of Systems Engineering, 21(6), 591-597.

Zou X., Pokharel S., & Piplani R. (2008). A two-period supply contract model for a decentralized assembly system. European Journal of Operational Research, 187(1), 257-274.




DOI: http://dx.doi.org/10.3968/j.mse.1913035X20130703.2686

Refbacks

  • There are currently no refbacks.


Copyright (c)



Share us to:   

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
[email protected]; [email protected]; [email protected]

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures