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Operations and Supply Chain Management Commons™
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Full-Text Articles in Operations and Supply Chain Management
Contracting Mechanisms For Stable Sourcing Networks, Jennifer K. Ryan, Lusheng Shao, Daewon Sun
Contracting Mechanisms For Stable Sourcing Networks, Jennifer K. Ryan, Lusheng Shao, Daewon Sun
Department of Supply Chain Management and Analytics: Faculty and Staff Publications
Problem definition: We study profit allocation for a sourcing network, in which a buyer sources froma set of differentiated suppliers with limited capacity under uncertain demand for the final product. Whereas the buyer takes the lead in forming the sourcing network and designing the contract mechanism, due to their substantial bargaining power, the suppliers take the lead in determining the terms of the contract. Academic/practical relevance: We identify contracting mechanisms that will ensure the stability of the sourcing network in the long term, where a stable sourcing network requires an effective profitallocation scheme that motivates all members to …
Coordinating A Supply Chain With A Manufacturer-Owned Online Channel: A Dual Channel Model Under Price Competition, Jennifer K. Ryan, Daewon Sun, Xuying Zhao
Coordinating A Supply Chain With A Manufacturer-Owned Online Channel: A Dual Channel Model Under Price Competition, Jennifer K. Ryan, Daewon Sun, Xuying Zhao
Department of Supply Chain Management and Analytics: Faculty and Staff Publications
We consider a dual channel supply chain in which a manufacturer sells a single product to end-users through both a traditional retail channel and a manufacturer-owned direct online channel. We adopt a commonly used linear demand substitution model in which the mean demand in each channel is a function of the prices in each channel.We model each channel as a news vendor problem, with price and order quantity as decision variables. In addition, the manufacturer must choose the wholesale price to charge to the independent retailer. We analyze the optimal decisions for each channel and prove the existence of a …