Abstract
In the past few years, the problem of supply chain uncertainty attracts more and more people’s attention. However, people place almost all their focus on demand and supply uncertainties and seldom study operating uncertainties of supply chain. This paper investigates the problem of operating uncertainty from the aspect of oligarch competition. First, we examine the supply chain, one supplier and two competing retailers, coordination mechanism with a revenue sharing contract and a quantity-discount contract under a deterministic environment. Second, we assume the retailers’ uncertain behaviors, price competition, occur. Then, we discuss the supply-chain ripple effect due to duopoly retailers’ price competition with the two different contracts. By comparing the intensity of the supply-chain ripple effect with the different contracts, we find out that the quantity-discount contract can be well suited to the uncertain environment.
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Acknowledgment
This research was partly supported by the National Natural Science Foundation of China (Grant No. 70773017).
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Zhao, Q., Chen, H., Wu, Zh. (2013). Supply-Chain Ripple Effect Under Duopoly Retailers’ Operating Uncertainty with Two Different Contracts. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-37270-4_17
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DOI: https://doi.org/10.1007/978-3-642-37270-4_17
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