Please use this identifier to cite or link to this item:
Title: Channel coordination using options contract under simultaneous price and inventory competition
Authors: Biswas, Indranil
Avittathur, Balram
Keywords: Competition
Nash equilibrium
Options contract
Supply chain management
Issue Date: 2019
Publisher: SCOPUS
Transportation Research Part E: Logistics and Transportation Review
Elsevier Ltd
Series/Report no.: 123
Abstract: In this paper we demonstrate that options contract coordinates single supplier - multiple buyer supply chain network and can eliminate channel conflict stemming from simultaneous price and inventory competition. We show that a pure strategy unique Nash equilibrium exists for buyers� game and the supplier is able to coordinate the entire supply chain. Our analysis further indicates that options contract provides the supplier with better flexibility in terms of profit allocation compared to buyback contract. We identify a key limitation of this contract: it can coordinate a supply chain only with a limited number of buyers.
Description: Biswas, Indranil, Operations Management Area, Indian Institute of Management Lucknow, Prabandh Nagar, Off Sitapur Road, Lucknow, Uttar Pradesh 226 013, India; Avittathur, Balram, Operations Management Area, Indian Institute of Management Calcutta, Diamond Harbour Road, Joka, Kolkata, West Bengal 700 104, India
ISSN/ISBN - 13665545
DOI - 10.1016/j.tre.2019.01.010
Appears in Collections:Operations Management

Files in This Item:
There are no files associated with this item.

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.