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

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  • Zhi-yang Liu
  • Yong Liu
  • Hui Li

Abstract

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.

Suggested Citation

  • Zhi-yang Liu & Yong Liu & Hui Li, 2020. "A Coordination Mechanism of Supply Chain with a Retailer and Two Competitive Suppliers," Complexity, Hindawi, vol. 2020, pages 1-14, May.
  • Handle: RePEc:hin:complx:2128497
    DOI: 10.1155/2020/2128497
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    Cited by:

    1. Govindan, Kannan & Mina, Hassan & Alavi, Behrouz, 2020. "A decision support system for demand management in healthcare supply chains considering the epidemic outbreaks: A case study of coronavirus disease 2019 (COVID-19)," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 138(C).
    2. Feiyan Han & Herui Wang & Hongyu Lv & Bo Li, 2022. "Research on Manufacturers’ Referral Strategy Considering Store Brand Retailers and Traditional Retailers," Mathematics, MDPI, vol. 10(18), pages 1-23, September.

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