Abstract
To deal with coordination problem of a supply chain consisting of two competitive suppliers and a dominant retailer, considering these factors such as cooperation effort degrees and competition on the supply chain members, we establish a two-stage model considering cooperation effort degrees and competition of the suppliers from the perspectives of decentralized decision and centralized decision and exploit it to discuss the optional decisions and explore the impact of cooperation effort degrees on the profits of supply chain members. Then, we use a group negotiation model to establish a coordination mechanism. The results reveal that the decision variables and overall profit of the supply chain of suppliers and retailers under centralized decisions are better than those under the decentralized decisions. Besides, the degree of competition and price sensitivity have positive and negative effects on the efforts of suppliers and retailers, respectively. Meanwhile, the degree of cooperation between suppliers and retailers affects the profits of supply chain members and the whole supply chain in different degrees. Finally, the proposed value-added profit distribution mechanism can effectively deal with conflict problem and guarantee supply chain members and supply chain to maximize their profits and adopt the centralized decision.
Highlights
With the rapid development of science and technology and the deepening of economic globalization, strengthening supply chain management is much more important for enterprises to obtain profits and enhance their competitive strength in the increasingly fierce market competition
Retailers and suppliers often make decisions according to the maximization of their profits in the process of supply chain management, and there exists a variety of conflicts among supply chain and supply chain members, which influences the stability and sustainability of the supply chain. e beauty industry has been in a state of constant enthusiasm in the global market in recent years, and since China is a market with huge profit margins, many foreign brands are constantly pouring into the Chinese market
As a US company entering the Chinese market, Mentholatum has made an understanding of Asian women and men’s skin to produce skincare products which are suitable for Asians
Summary
With the rapid development of science and technology and the deepening of economic globalization, strengthening supply chain management is much more important for enterprises to obtain profits and enhance their competitive strength in the increasingly fierce market competition. The cooperation between Watson Group and Mentholatum is bound to affect the product price and market demand of Nivea, which will greatly reduce the enthusiasm for cooperation with retailers and cause channel conflicts. To solve conflict or coordination problems, considering that cooperation effort degrees and competition degrees are important factors on the supply chain members, we construct a two-stage model and design a coordination mechanism through value-added benefit distribution through group negotiation model.
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