On coordination under random yield and random demand

Guler M. G., Keskin M. E.

EXPERT SYSTEMS WITH APPLICATIONS, vol.40, no.9, pp.3688-3695, 2013 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 40 Issue: 9
  • Publication Date: 2013
  • Doi Number: 10.1016/j.eswa.2012.12.073
  • Journal Name: EXPERT SYSTEMS WITH APPLICATIONS
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.3688-3695
  • Keywords: Supply chain management, Coordination, Random yield, Random demand, ORDER QUANTITY, MODEL
  • Yıldız Technical University Affiliated: No

Abstract

This paper analyzes coordination in a supply chain with random yield and random demand (SCRYRD). We study wholesale price, buy-back, revenue share, quantity discount and quantity flexibility contracts. We show that the randomness in the yield does not change the coordination ability of the contracts but affects the values of the contract parameters. In particular, all contracts are shown to coordinate the supply chain under voluntary compliance except the wholesale price contract. We also provide a sensitivity analysis of the optimal policy parameters to the cost and demand parameters. (c) 2012 Elsevier Ltd. All rights reserved.