Coordination in the Decentralized Assembly System with Dual Supply Modes
This paper investigates a decentralized assembly system that consists of one assembler and two independent suppliers; wherein one supplier is perfectly reliable for the production, while the other generates yield uncertainty. Facing the random market demand, the assembler has to order the components...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Wiley
2013-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2013/381987 |
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| _version_ | 1841524735346737152 |
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| author | Xu Guan Mengqi Liu |
| author_facet | Xu Guan Mengqi Liu |
| author_sort | Xu Guan |
| collection | DOAJ |
| description | This paper investigates a decentralized assembly system that consists of one assembler and two independent suppliers; wherein one supplier is perfectly reliable for the production, while the other generates yield uncertainty. Facing the random market demand, the assembler has to order the components from one supplier in advance and meanwhile requires the other supplier to deliver the components under VMI mode. We construct a Nash game between the supplier and the assembler so as to derive their equilibrium procurement/production strategies. The results show that the channel’s performance is highly undermined by the decentralization between players and also the combination of two supply modes. Compared to the centralized system, we propose an advance payment contract to perfectly coordinate the supply chain performance. The numerical examples indicate some management implications on the supply mode comparison and sensitivity analysis. |
| format | Article |
| id | doaj-art-951781c7f64d4d62b9c61d8ffc2a9b0b |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2013-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-951781c7f64d4d62b9c61d8ffc2a9b0b2025-02-03T05:47:34ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2013-01-01201310.1155/2013/381987381987Coordination in the Decentralized Assembly System with Dual Supply ModesXu Guan0Mengqi Liu1Economic and Management School, Wuhan University, Wuhan 430000, ChinaSchool of Business Administration, Hunan University, Changsha 410082, ChinaThis paper investigates a decentralized assembly system that consists of one assembler and two independent suppliers; wherein one supplier is perfectly reliable for the production, while the other generates yield uncertainty. Facing the random market demand, the assembler has to order the components from one supplier in advance and meanwhile requires the other supplier to deliver the components under VMI mode. We construct a Nash game between the supplier and the assembler so as to derive their equilibrium procurement/production strategies. The results show that the channel’s performance is highly undermined by the decentralization between players and also the combination of two supply modes. Compared to the centralized system, we propose an advance payment contract to perfectly coordinate the supply chain performance. The numerical examples indicate some management implications on the supply mode comparison and sensitivity analysis.http://dx.doi.org/10.1155/2013/381987 |
| spellingShingle | Xu Guan Mengqi Liu Coordination in the Decentralized Assembly System with Dual Supply Modes Discrete Dynamics in Nature and Society |
| title | Coordination in the Decentralized Assembly System with Dual Supply Modes |
| title_full | Coordination in the Decentralized Assembly System with Dual Supply Modes |
| title_fullStr | Coordination in the Decentralized Assembly System with Dual Supply Modes |
| title_full_unstemmed | Coordination in the Decentralized Assembly System with Dual Supply Modes |
| title_short | Coordination in the Decentralized Assembly System with Dual Supply Modes |
| title_sort | coordination in the decentralized assembly system with dual supply modes |
| url | http://dx.doi.org/10.1155/2013/381987 |
| work_keys_str_mv | AT xuguan coordinationinthedecentralizedassemblysystemwithdualsupplymodes AT mengqiliu coordinationinthedecentralizedassemblysystemwithdualsupplymodes |