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Coordination of closed-loop supply chain with quantity discount contract under demand disruptions

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Indexed by:会议论文

Date of Publication:2013-10-16

Included Journals:EI、Scopus

Volume:1

Page Number:618-633

Abstract:In this paper, a retailer collecting closed-loop supply chain (CLSC) composed of one manufacturer and one retailer is investigated in centralized and decentralized decisionmaking models. In normal environment without demand disruptions, we find that there is "double marginalization" problem in the decentralized CLSC. For this reason, a quantity discount contract is designed to coordinate the decentralized decision-making CLSC by Kuhn- Tucker condition and linear function methods. Furthermore, we analyze the optimal strategy of centralized CLSC under demand disruptions. We find that the decentralized decisionmaking CLSC can not be coordinated with the original quantity discount. Thus, an adjusted quantity discount contract is proposed to coordinate the decentralized CLSC under demand disruptions. In the end, some numerical examples are given to illustrate the theoretical results.

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