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Supply Chain Coordination for Tailored Postponement
定制延迟模式的供应链协调

Keywords: tailored postponement,forecast updating,risk sharing,price premium
定制延迟
,预测更新,风险共担,价格差异

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Abstract:

The proliferation of product varieties calls for tailored postponement, a combination production mode that takes the less risk of postponement and the less cost attributed to the traditional production mode. In this paper we model the supply chain in which tailored postponement is implemented, and prove that the expected profit of the system is concave to the decision vector, which assures the optimality of tailored postponement, and the uniqueness of the optimum for a risk-neutral supply chain. In order to popularize this valuable production mode in the decentralized system, we design a Bi-directional Risk-sharing with Price Premium(BRPP) mechanism for a retailer-supplier streamline, and optimize the response of the channel members under such a mechanism. It is proved that BRPP is capable to achieve coordination, furthermore, it is flexible enough to arbitrarily allocate the profit of the system between the members. The profit allocation follows the rule of the higher risk, the more profit, which helps the decentralized system to achieve win-win.

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