Coordination of a three-level supply chain under disruption using profit sharing and return policy contracts

Tavakoli, E.; Mirzaee, M.

Growing Science » International Journal of Industrial Engineering Computations » Coordination of a three-level supply chain under disruption using profit sharing and return policy contracts

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International Journal of Industrial Engineering Computations

ISSN 1923-2934 (Online) - ISSN 1923-2926 (Print) Quarterly Publication Volume 5 Issue 1 pp. 139-150 , 2014

Coordination of a three-level supply chain under disruption using profit sharing and return policy contracts Pages 139-150 Download PDF

Authors: Ebrahim Manzari Tavakoli, Mehdi Mirzaee

DOI: 10.5267/j.ijiec.2013.09.001

Keywords: Coordination, Disruption, Profit sharing, Return policy, Three-level Supply chain

Abstract: This paper studies a three-level supply chain with one retailer, one distributer and one manufacturer under disruption. First, we show that profit sharing and return policy contracts established between members can coordinate this supply chain. Then, we investigate the effect of demand disruption in supply chain and we illustrate the possibility of breaking the initial desirable coordination. We consider two possible scenarios for the demand disruption separately; afterwards we define the revised coordinator parameters to respond to their effect in supply chain. Numerical examples for validation and evaluation of our model are also elaborated.

How to cite this paper

 Tavakoli, E & Mirzaee, M. (2014). Coordination of a three-level supply chain under disruption using profit sharing and return policy contracts.International Journal of Industrial Engineering Computations , 5(1), 139-150.

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