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A supply chain coordination mechanism with suppliers’ effort performance level and fairness concern

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  • Liu, Yong
  • Wang, Dong-dong
  • Xu, Qian

Abstract

The interest conflict is an important factor affecting the supply chain (SC) performance, so it is very important to set up a reasonable coordination mechanism to eliminate the SC conflicts. Considering the fact that suppliers' effort performance level and fairness concern behavior are important factors affecting SC performance, we can develop SC models to analyze and compare SC decisions under the centralized decision and decentralized decision, and then we design a SC coordination mechanism through cost sharing. The results show that the designed coordination mechanism can effectively solve the conflict problem of SC, mobilize SC members’ motivation and initiative without damaging their profits, and realize the long-term cooperation between the retailer and multi-suppliers. It also can achieve the Pareto improvement and the sustainable development of SC.

Suggested Citation

  • Liu, Yong & Wang, Dong-dong & Xu, Qian, 2020. "A supply chain coordination mechanism with suppliers’ effort performance level and fairness concern," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:joreco:v:53:y:2020:i:c:s0969698919301936
    DOI: 10.1016/j.jretconser.2019.101950
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