A Coordination Mechanism of Supply Chain with a Retailer and Two Competitive Suppliers

To deal with coordination problem of a supply chain consisting of two competitive suppliers and a dominant retailer, considering these factors such as cooperation effort degrees and competition on the supply chain members, we establish a two-stage model considering cooperation effort degrees and com...

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Main Authors: Zhi-yang Liu, Yong Liu, Hui Li
Format: Article
Language:English
Published: Wiley 2020-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2020/2128497
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author Zhi-yang Liu
Yong Liu
Hui Li
author_facet Zhi-yang Liu
Yong Liu
Hui Li
author_sort Zhi-yang Liu
collection DOAJ
description To deal with coordination problem of a supply chain consisting of two competitive suppliers and a dominant retailer, considering these factors such as cooperation effort degrees and competition on the supply chain members, we establish a two-stage model considering cooperation effort degrees and competition of the suppliers from the perspectives of decentralized decision and centralized decision and exploit it to discuss the optional decisions and explore the impact of cooperation effort degrees on the profits of supply chain members. Then, we use a group negotiation model to establish a coordination mechanism. The results reveal that the decision variables and overall profit of the supply chain of suppliers and retailers under centralized decisions are better than those under the decentralized decisions. Besides, the degree of competition and price sensitivity have positive and negative effects on the efforts of suppliers and retailers, respectively. Meanwhile, the degree of cooperation between suppliers and retailers affects the profits of supply chain members and the whole supply chain in different degrees. Finally, the proposed value-added profit distribution mechanism can effectively deal with conflict problem and guarantee supply chain members and supply chain to maximize their profits and adopt the centralized decision.
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publishDate 2020-01-01
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spelling doaj-art-4da4bc4ec1fa47829a1baf268de4f6be2025-02-03T06:45:59ZengWileyComplexity1076-27871099-05262020-01-01202010.1155/2020/21284972128497A Coordination Mechanism of Supply Chain with a Retailer and Two Competitive SuppliersZhi-yang Liu0Yong Liu1Hui Li2School of Business, Jiangnan University, Wuxi 214122, ChinaSchool of Business, Jiangnan University, Wuxi 214122, ChinaSchool of Business, Jiangnan University, Wuxi 214122, ChinaTo deal with coordination problem of a supply chain consisting of two competitive suppliers and a dominant retailer, considering these factors such as cooperation effort degrees and competition on the supply chain members, we establish a two-stage model considering cooperation effort degrees and competition of the suppliers from the perspectives of decentralized decision and centralized decision and exploit it to discuss the optional decisions and explore the impact of cooperation effort degrees on the profits of supply chain members. Then, we use a group negotiation model to establish a coordination mechanism. The results reveal that the decision variables and overall profit of the supply chain of suppliers and retailers under centralized decisions are better than those under the decentralized decisions. Besides, the degree of competition and price sensitivity have positive and negative effects on the efforts of suppliers and retailers, respectively. Meanwhile, the degree of cooperation between suppliers and retailers affects the profits of supply chain members and the whole supply chain in different degrees. Finally, the proposed value-added profit distribution mechanism can effectively deal with conflict problem and guarantee supply chain members and supply chain to maximize their profits and adopt the centralized decision.http://dx.doi.org/10.1155/2020/2128497
spellingShingle Zhi-yang Liu
Yong Liu
Hui Li
A Coordination Mechanism of Supply Chain with a Retailer and Two Competitive Suppliers
Complexity
title A Coordination Mechanism of Supply Chain with a Retailer and Two Competitive Suppliers
title_full A Coordination Mechanism of Supply Chain with a Retailer and Two Competitive Suppliers
title_fullStr A Coordination Mechanism of Supply Chain with a Retailer and Two Competitive Suppliers
title_full_unstemmed A Coordination Mechanism of Supply Chain with a Retailer and Two Competitive Suppliers
title_short A Coordination Mechanism of Supply Chain with a Retailer and Two Competitive Suppliers
title_sort coordination mechanism of supply chain with a retailer and two competitive suppliers
url http://dx.doi.org/10.1155/2020/2128497
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