Industrial Engineering Journal ›› 2012, Vol. 15 ›› Issue (4): 41-46.

• articles • Previous Articles     Next Articles

A Research on Coordination of VMI&TPL Supply Chain under Centralized Control

  

  1. (College of Management and Economics, Tianjin University, Tianjin 300072, China)
  • Online:2012-08-31 Published:2012-09-19

Abstract: The coordination problem of a supply chain under vendor managed inventory (VMI) mode with third party logistics (TPL) is studied in this paper. In the supply chain, the demands are subject to random disturbance. It is assume that the supply chain is coordinated by revenue sharing (RS) contract and it is operated under centralized control mode. Consider that the basic RS contract is no longer effective, an RS contract with the stock risk shared by retailer, supplier, and TPL is proposed to coordinate the supply chain. This contract is further extended to the RS contract combined with risk-sharing under Asymmetric Nash Negotiation. With these contracts, analysis is carried out. Results show that while the RS contract with risk-sharing can maximize the expected revenue of whole supply chain, the one with risk-sharing under Asymmetric Nash Negotiation can coordinate the supply chain well and at the same time the Pareto improvement for every member's expected revenue can be achieved.