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Coordination Mechanisms for a Three-Echelon Fast-Moving Consumer Goods Supply Chain Considering Supply and Demand Effects

In: Liss 2022

Author

Listed:
  • Yi Wang

    (Inner Mongolia Kunming Cigarette Limited Liability Company)

  • Bingkun Dong

    (China Tobacco Industry Development Center)

  • Yefei Yang

    (Beijing Jiaotong University)

  • Shaobin Wei

    (Inner Mongolia Kunming Cigarette Limited Liability Company)

Abstract

This paper develops the coordination of supply and demand in the Fast-Moving Consumer Goods (FMCG) supply chain. By establishing a three-echelon supply chain model including a supplier, a distributor, and a retailer, the cost function of each member is analyzed on the basis of supply and demand, and the optimal strategy and Nash equilibrium strategy are calculated. An effective coordination mechanism is designed by comparing the optimal strategy with the Nash equilibrium strategy. Through the compensation mechanism, the supply chain can achieve the optimal scenario.

Suggested Citation

  • Yi Wang & Bingkun Dong & Yefei Yang & Shaobin Wei, 2023. "Coordination Mechanisms for a Three-Echelon Fast-Moving Consumer Goods Supply Chain Considering Supply and Demand Effects," Lecture Notes in Operations Research, in: Xiaopu Shang & Xiaowen Fu & Yixuan Ma & Daqing Gong & Juliang Zhang (ed.), Liss 2022, pages 291-303, Springer.
    • Handle: RePEc:spr:lnopch:978-981-99-2625-1_22
    DOI: 10.1007/978-981-99-2625-1_22
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