Coordinating a three-layer supply chain with uncertain demand and random yield
研究了一个包含原材料供应商、制造商和零售商的三层供应链，在市场需求和产出均随机的情况下，提出一种结合回购、销售返利和惩罚的复合合同来实现协调。
The paper considers a three-layer supply chain involving one raw-material supplier, one manufacturer and one retailer. The market demand is assumed to be stochastic and productions at the raw-material supplier and manufacturer are subject to random yield. The centralised model is studied as the benchmark case. The decentralised model is solved and Nash equilibrium solutions are obtained. It is shown that buyback contract fails to coordinate such a supply chain. However, a composite contract framed combining buyback, and sales rebate and penalty contracts is shown to coordinate the supply chain. Numerical examples are provided to illustrate the developed models.