Abstract
There are many studies for management problems in supply chains consisting of manufacturers and retailers. As one of such studies, a negotiation procedure for concluding a contract in a supply chain consisting of a manufacturer and a retailer has been considered based on a cooperative game theoretic approach. However, the more common situation is that a wholesaler is an intermediary between a manufacturer and a retailer. From this viewpoint, the study on the negotiation procedure for concluding a contract in the tandem supply chain that three members of a manufacturer, a wholesaler and a retailer are arranged tandem should be also investigated. On one hand, the negotiation procedure in the supply chain consisting of a manufacturer and a retailer has been considered under a situation where a probability density function (p.d.f.) of demand quantity is unknown and only the mean and variance as limited information about demand quantity are forecasted. In this study, we derive a collaborative bargaining solution for a contract in a tandem supply chain through a negotiation procedure based on the cooperative game theoretic approach under a situation where only the mean and variance of demand quantity are given as limited information. For deriving the bargaining solution in the tandem supply chain, the distribution free approach based on Cauchy-Schwarz inequality is adopted to evaluate the lower bounds of the expected profits of the manufacturer, wholesaler and retailer. As a result, a unique collaborative bargaining solution of a contract in the tandem supply chain consisting of three or more members is derived under a situation where the probability density function of demand quantity is unknown and only the mean and variance of demand quantity are given.
Translated title of the contribution | Collaborative bargaining solution for contract problems under only limited information of demand in tandem supply chains |
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Original language | Japanese |
Pages (from-to) | 99-109 |
Number of pages | 11 |
Journal | Journal of Japan Industrial Management Association |
Volume | 72 |
Issue number | 2 |
DOIs | |
Publication status | Published - Jul 15 2021 |
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics