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The paper focuses on information sharing of a two-level supply chain composed of a manufacturer and a retailer. Based on the principal-agent theory, under considering risk costs a mechanism is designed to improve effort level of information sharing, and different parameter terms of incentive and supervisory mechanism to ensure the validity of mechanism are discussed. The results show by selecting...
This paper studies price discount contract coordination of a three-level supply chain. Under the stochastic market demand, previous price discount contract did not consider shortage cost. We present an approach by adding out-of-stock cost parameters which improves price discount contract of three-level supply chain. The supply chain can reach coordination and the optimal profits of the supply chain...
Information sharing incentive and supervisory mechanism enhances the current supply chain management environment. Based on the principal-agent theory, this paper studies how the core enterprise provides an incentive and supervisory mechanism to the partner enterprises, so as to improve their effort level of information sharing. In the designed mechanism, the liner function is firstly induced to describe...
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