Journal of Shanghai Jiao Tong University

Journal of Shanghai Jiaotong University ›› 2015, Vol. 49 ›› Issue (04): 531-536.

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A Mechanism of Supply Chain Coordination and Risk Sharing Through Lead-Time Flexibility

ZHANG Yibin1,LONG Jing2,CHEN Junfang2   

  1. (1. Scholol of Business Management, Shanghai Lixin University of Commerce, Shanghai 201620, China;2. Antai College of Economics and Management, Shanghai Jiaotong University, Shanghai 200052, China)
  • Received:2014-01-18

Abstract:

Abstract： In the environment of contract manufacturing, demand uncertainty often leads to variation of delivery lead-time and impacts on upstream and downstream decision-making in innovative products supply chain and generates incentive conflicts. A supply chain coordination model provides a Stackelberg game process, which is established by a real option of lead-time flexibility between suppliers and buyers. It makes suppliers and buyers to determine their right policies on the reasonable variable magnitude of delivery lead-time, flexible cost-sharing ratio and optimal order policy. It is found out that this two-way operation of risk sharing mechanisms may make supply chain channel for innovative products to achieve Pareto optimization, thus coordinates the whole supply chain and improves supply chain performance.

Key words: hi-tech industries, demand uncertainty, lead-time flexibility

CLC Number: