Abstract

The bullwhip effect (BWE) and stochastic demand coexist in supply chain operation management, which leads to a lower performance. In recent years, with the development of blockchain, cloud computing, big data, and other digital technologies (DTs), many enterprises hope to use them to weaken the BWE and improve profits. This paper focuses on improving the application level of DTs in the supply chain through coordination for enhancing the performance. We consider a supply chain with one-supplier-one-retailer and coordinate it with the cost-sharing contract and revenue-cost-sharing contract (the improved contract). We find out that the retailer and supplier did not always have the willingness to use DTs to alleviate the BWE. Even if they have the intention to use DTs, their ideal application level is not the same. After coordination, both the application level of DTs and the performance of the supply chain are improved, and we find that the improved contract has a better coordination effect. Finally, we validate our model by numerical simulation.

Highlights

  • With the development of digital technologies (DTs), i.e., blockchain, cloud computing, and big data, new starting points arise for the scientific study of the supply chain coordination (SCC) [1,2,3,4]

  • We propose an SCC model considering both the bullwhip effect (BWE) and stochastic demand under DTs and the equilibrium solution solved by game theory

  • From Proposition 1, we find that the following: (1) e retailer and supplier’s expectation of the application level of DTs is different in the supply chain with the BWE and stochastic demand. eir application of the same level of DTs is the result of commercial compromise

Read more

Summary

Introduction

With the development of digital technologies (DTs), i.e., blockchain, cloud computing, and big data, new starting points arise for the scientific study of the supply chain coordination (SCC) [1,2,3,4]. Is paper aims to incorporate the application level of DTs into the design of a coordination mechanism of supply chain management and establish a revenue-cost-sharing contract. 2. Literature Review is paper attempts to investigate the cost-sharing and revenue-cost-sharing joint contract that are used to analyze the SCC problem with the BWE and stochastic demand in the environment of DTs. us, the literature review includes three main research streams: the DTs and the SCC, SCC considering the BWE, the SCC contracts in the environment of DTs. Table 1 compares the current research with the most similar works in this area

DTs and the Supply Chain Coordination
Literature
Benchmark Model considering the BWE under DTs
Coordination of Supply Chain
Numerical Examples and Analysis
Conclusions
Retailer’s Optimal Decision Solution under Decentralized Decision-Making
Retailer and Supplier’s Optimal Decisions under Revenue-CostSharing Contract

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.