Abstract
Companies in many industries have begun to realize that conflicts of interest among the various parties in a supply chain can engender operationally inefficient behavior. Consequently, many researchers have become interested in identifying and evaluating methods of coordinating supply chains in which multiple decision makers pursue individual agendas (cf. [32]). The typical approach in the OM literature is to partition a traditional inventory model into a number of subproblems, each representing the decisions and objectives of a distinct organization. Most commonly, the supply chain is assumed to contain just two firms, e.g., a manufacturer and a retailer. The analysis then proceeds to pinpoint the root causes of inefficiency, and recommend mechanisms for appropriately adjusting individual incentives.
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Agrawal, N., Tsay, A.A. (2002). Intrafirm Incentives and Supply Chain Performance. In: Song, JS., Yao, D.D. (eds) Supply Chain Structures. International Series in Operations Research & Management Science, vol 42. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-6635-6_3
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DOI: https://doi.org/10.1007/978-1-4757-6635-6_3
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