TITLE:
Research on Order Decision of Quantity Flexibility Contract under the Competition between Multiple Suppliers and Multiple Retailers
AUTHORS:
Cheng Qian, Yanan Tao, Zhilin Qin
KEYWORDS:
Supplier, Retailer, Competition, Quantity Flexibility, Order Decision
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.9,
September
4,
2018
ABSTRACT: In the
supply chain system consisting of multiple suppliers and multiple retailers, in
order to realize supply chain coordination, we studied the ordering decision
under the quantity flexibility contract with competition between both sides. On the one hand, from the perspective of suppliers,
a satisfactory production of goods for each supplier was obtained by means of a
kind of interactive programmer step method. On the other hand, from the
perspective of retailers, because each
supplier holds a different preference attitude for different retailers, we sort
retailers as preference in application of a group decision sequencing method of
Markov chain. The optimal order quantity of goods for each retailer was
obtained at the same time and we prove that it is Pareto optimal. Finally, we
give a numerical example.