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Supply chain coordination with a single supplier and multiple retailers considering customer arrival times and route selection

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  • Moon, Ilkyeong
  • Feng, Xuehao

Abstract

We address a novel decentralized supply chain with one supplier and multiple independent retailers based on the practice of several supply chains in the real world. Coordination of such a supply chain has rarely been studied. Despite overcoming the well-known double marginalization, the supplier’s route selection can obstruct supply chain coordination. We present a wholesale-price-and-carpooling contract to coordinate such a supply chain. We demonstrate supply chain coordination under such a contract and show that the profit along the supply chain can be arbitrarily allocated. We show that the popular revenue-sharing contract may lose flexibility in profit allocations.

Suggested Citation

  • Moon, Ilkyeong & Feng, Xuehao, 2017. "Supply chain coordination with a single supplier and multiple retailers considering customer arrival times and route selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 78-97.
    • Handle: RePEc:eee:transe:v:106:y:2017:i:c:p:78-97
    DOI: 10.1016/j.tre.2017.08.004
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