Three-stage supply chain coordination of emergency quantity flexibility contract under random price
SHI Wenqiang1, LIU Chongguang2, WANG Mingyue3, WU Shan1, LE Chengyi2, TANG Enbin4
1.School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China;2.School of Economic and Management, East China Jiaotong University, Nanchang, Jiangxi 330013 China;3.School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing 100190, China;4.School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Abstract:Considering the random price condition caused by emergency, a three-stage supply chain model under the quantity flexibility contract was constructed to solve the optimal ordering and pricing strategy. Meanwhile, the models of no-emergency and market price stability were established to explore the changes of supply chain coordination under different scenarios. In addition, flexibility coefficients were changed as a variable to analyze the impact on the overall revenue and related parties' decisions. The results showed that, there is only one optimal ordering strategy when the flexibility coefficients are constant. Only by adjusting the benchmark contract properly, could we coordinate the response to emergency. When the flexibility coefficients are variable, there is only a single supply decision, while the unique optimal ordering decision does not exist. Finally, a numerical example proved that changes of flexibility coefficients would not have influence on the overall optimal revenue.