Supply chain coordination

Chen F (2003) Information Sharing and Supply Chain Coordination. In de Kok AG, Graves SC (eds) Supply Chain Management Design, Coordination and Operation. Elsevier, Amsterdam et al., pp 341-421... 

Supply Chain Coordination—Growing Network and Collection Recruitment A supply chain is defined as a system of suppliers, manufacturers, distributors, retailers, and customers where material, financial, and information flows connect... 

I. Giannoccaro, and P. Pontrandolfo, Supply Chain Coordination by Revenue Sharing Contracts, International Journal of Production Economics, 89, 131-139 (2004). 

Luh PB, Feng W (2003) From manufacturing scheduling to supply chain coordination the control of complexity and uncertainty. J Syst Sci Syst Eng 12(3) 279-297... 

The first goal of this book is to focus on supply chain architecture by focusing on four specific concepts, i.e., the Four Cs of supply chain man etnent. These four Cs are chain structure and ownership, capacity—its type and location across the supply chain, coordination mechanisms, and competitiveness—the metrics of competition and the competitive pressures faced by the supply chain. Choices made regarding each of these Four Cs generate possible supply chain architectures. 

The main message is that revenue-sharing agreements need an effective information system to guarantee compliance. But, as we shall see later in this chapter, they enable supply chain coordination and can thus generate Pare to-improving outcomes for participating companies. 

In the development of the supply chain strategy, there is a critical question for each company to answer. It is, "How and what should be outsourced " Outsourcing to third parties can happen in all supply chain links—sales, distribution, manufacturing, procurement, and iimovation— in building a value chain. It can add value, reduce costs, and improve time to market, but it increases the need for planning, supply chain coordination of day-to-day activities and inventory, and visibility. Although companies can outsource their day-to-day supply chain activities, they cannot outsource... 

Several studies have dealt with coordination aspects in recent years. A number of supply chain coordination mechanisms have been proposed by many researchers to manage the supply chain interdependencies these are illustrated in Table 2. 

This research attempts to develop a procedure referred to as eSCM-I to improve supply chain business processes, taking into consideration the Internet and e-business communication technologies. The procedure identifies process interdependencies and managing supply chain coordination. 

To the best of our knowledge, there have been few studies that deal with supply chain coordination where all agents involved adopt the satisficing objectives. This chapter attempts to fill this gap. The contractual forms we consider include WP, BB, and QF contracts. We focus these three contractual forms for three reasons. Firstly, they are popular contracts in business practice (Tayur, Ganeshan, Magazine, 1999). Secondly, they have been extensively studied in the supply chain literature, mostly in the framework of expected profit maximization (Cachon, 2003). Thirdly, WP, BB, and QF contracts have one, two, and three contract parameters, respectively. Hence, our research will answer the question if increased degrees of freedom in contractual forms will be beneficial to coordination of supply chains with the satisficing objectives. 

When the agents involved in a supply chain adopt the satisficing objectives, it is not obvious as to what the objective function of the supply chain entity should be. In our research, we adopt the general definition of supply chain coordination with contracts proposed by Gan, Sethi, and Yan... 

Next, we identify the contractual forms that are capable of supply chain coordination. It is shown that WP contracts can coordinate the supply chain witli the satisficing objective, whereas BB contracts cannot. Furthermore, QF contracts have to degenerate into WP contracts to coordinate a supply chain with satisficing objectives. 

It is worthwhile noticing that the results we obtained in this chapter are contrary to those obtained for supply chain coordination with the objective of expected profit (cost) maximization (minimization). Under such an objective, BB and QF contracts can coordinate the supply chain, whereas WP contracts cannot. As a result, advanced contracts, such as the BB and QF contracts, have been advocated to improve the performance of the supply chain (Tayur et al., 1999). However, our results indicate that for the supply chain with the satisficing objectives, the simple WP contracts, instead of BB contracts. 

Cachon, G. (2003). Supply chain coordination with contracts. In A.G. de Kok S.C. Graves (Eds.), Supply chain management Design, coordination and operation. Elsevier. 

Shilei Yang is a PhD candidate in operations management at Washington State University (USA). His BS in management science and BE in computer science are from University of Science and Technology of China. Then he obtained his MA in economics and MS in mathematics from Middle Tennessee State University (USA). His primary research interests include supply chain coordination, inventory control, and optimization. 

Links can be of two types. Eirst, links are the ways partners in the supply chain coordinate their joint enterprise. Links can include any of the supply chain components — physical, information, financial, or knowledge flow — and the business rules that go with them. Strong links lead to a well-coordinated effort weak ones to an uncoordinated effort. Links are also... 

Cachon, G. 2002. Supply chain coordination with contracts. Forthcoming in ""Handbooks in Operations Research and Management Science Supply Chain management, S. Graves and T. de Kok, editors. 

Mahajan, S and G. van Ryzin. 1999b. Supply chain coordination under horizontal competition. Working Paper, Columbia University. 

In this chapter, we explore a modelling paradigm for supply chain coordination using the notion of supply chain intermediary. Our goal is to complement the view offered by the supply chain contracting literature that uses long-term coordination contracts as a primary mechanism to achieve channel efficiency. We propose to look at the problem of supply chain coordination... 

As discussed throughout the chapter, the viewpoints offered by the supply chain intermediary theory and the bargaining theory could potentially broaden the scope for supply chain coordination. In the following, we outline a few research opportunities offered by the proposed paradigm. 

Cachon, G. P. (2002). Supply chain coordination with contracts. Technical report. 

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