J Shanghai Jiaotong Univ Sci

Journal of Shanghai Jiaotong University(Science) >

2015 , Vol. 20 >Issue 6: 743 - 751

DOI: https://doi.org/10.1007/s12204-015-1685-9

Research article

Fairness-Embedded Governmental Coordination by Dominated Retailer in Heterogeneous Circumstance

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  • 1 School of International and Public Affairs, Shanghai Jiaotong University, Shanghai 200030, China
    2 School of Business, Southern Yangtze University, Wuxi 214122, Jiangsu, China
    3 School of Management Science & Industrial Engineering, Qingdao University, Qingdao 266071, Shandong, China

Received date: 2014-05-26

  Online published: 2020-10-09

Supported by

The National Natural Science Foundation of China (Nos.71371086 and 71501128);The Central University Basic Research Funds (No.JUSRP51416B);The Inter-discipline Foundation of Shanghai Jiao Tong University (No.15JCZY05);The Shandong Social Science Planning Fund (No.14CGLJ07);The Shandong Provincial Natural Science Foundation (No. 2015ZRB019HR)

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Abstract

Market demand is positively affected by the investments in marketing and quality improvement. In a retailer dominated supply chain, the manufacturer takes charge of product quality improvement and the retailer focuses on marketing. The investments on cooperative marketing and product quality improvement in supply chains are known to be heterogeneous investment, where the manufacturer (he) is fairness sensitive and the retailer (she) is fairness insensitive. Due to the manufacturer's conservative investment resulting from this sensitivity of fairness, the retailer shares a proportion of the manufacturer's investment to increase his investment. It is found that the manufacturer's fairness negatively affects his investment and the manufacturer sometimes tends to be a ‘free rider' under decentralized decision patterns, which lead to a poor supply chain performance. This study also proves that both the manufacturer and the retailer are motivated to cooperate under centralized patterns, where the retailer's objective is additional expected profit and the manufacturer's objective is enlarging his utility. Based on the comparison of equilibrium solutions in decentralized and centralized patterns, this study suggests the range of cost-sharing proportion for supply chain coordination. The example shows the effectiveness of the provided supply chain coordination.

Key words： laterally loaded piles; hydraulic head; land deformation; pumping-recovery; $m$-method; back analysis; horizontal displacement; outage performance; magnetic resonance imaging (MRI); sparse representation; non-convex; generalized thresholding; amplify-and-forward (AF); beamforming; channel state information (CSI); power control; cognitive radio; monotone optimization; heterogeneous circumstance; Stackelberg game; fairness; supply chain coordination; dictionary updating; alternating direction method; two-level Bregman method with dictionary updating (TBMDU); price; circular excavation; heterogeneity; substitution; service parts; last stock; admission control scheme; handover service; high-speed train communication; S-clay1 model; undrained compression test; functionally graded materials; low-velocity water entry; cylindrical sandwich panel; rectangular sandwich plate; simply supported; free vibration; supercavitating; ventilated; dynamic mesh; pitching; resting-state brain function network; model network; connection distance minimization; topological property; anatomical distance; wall effect; underwater glider; nonlinear control; adaptive backstepping; Lyapunov function; cylinder structure; cylinder radius; initial velocity; entry angle; soft soil; strain-dependent modulus; common neighbor; video capsule endoscopy (VCE); frame rate; working hours; in vivo experiment

Cite this article

Guang-hua HAN, Xu-jin PU, Geng-xi DAI . Fairness-Embedded Governmental Coordination by Dominated Retailer in Heterogeneous Circumstance[J]. Journal of Shanghai Jiaotong University(Science), 2015 , 20(6) : 743 -751 . DOI: 10.1007/s12204-015-1685-9

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