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Today, I bring you the conclusion of the journal paper "Supply Chain Operations Considering Equity Concerns and Their Negotiation Breakdown Points"5.
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Today, the editor brings “ Conclusion of properties of important parameters of the journal article 《Supply chain operations considering fairness concerns and their negotiation rupture points》".
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内容摘要：Abstract
In this issue, we will introduce the conclusion of the journal paper "Supply Chain Operations Considering Equity Concerns and Breakdown Points in Negotiations"5 from three aspects: mind mapping, intensive reading content, and knowledge supplementation.
This issue's tweet will introduce the journal article 《Supply chain operations considering fairness concerns and their negotiation rupture points》 from three aspects: mind mapping, detailed reading content, and supplementary knowledge, focusing on analysis of conclusion.
思维导图：Mind mapping
精读内容：Intensive reading content
In the conclusion section, the authors mainly introduce the research content, findings and research prospects.
In the conclusion section, the author primarily introduces the research content, findings, and future research directions.
First, the author briefly introduces the research content, and in this paper, the wholesale price contract and the buyback contract are studied and analyzed separately in the supply chain where equity concerns are considered, and the contract design of price subsidy is used to facilitate coordination in the supply chain where it cannot be coordinated.
First, the author briefly outlines the research content. This paper investigates and analyzes wholesale price contracts and buyback contracts within a supply chain considering fairness concerns. Furthermore, it proposes contract designs involving price subsidies to achieve coordination in uncoordinated supply chains.
Second, the authors present the findings. First, the breakdown point of the negotiation directly affects the decision-making of both sides of the game. Second, based on the Stackelberg game model, when the wholesale price is an endogenous variable, the supplier's adjustment of the wholesale price weakens the role of the negotiation breakdown point. Third, the increase in the negotiation breakdown point of supply chain members will reduce the profit share of the other party, but the efficiency of the supply chain will be different. Fourth, considering the fair concern supply chain at the breakdown point of the negotiation, the equilibrium solution cannot coordinate the supply chain, and the supply chain can be coordinated after the contract design through price subsidies.
Secondly, the author presents the research findings. (1) The negotiation breakdown point directly impacts the decisions of both parties in the game. (2) Based on the Stackelberg game model, when the wholesale price is an endogenous variable, the supplier's adjustment of the wholesale price weakens the impact of the negotiation breakdown point. (3) An increase in the negotiation breakdown point for any supply chain member reduces the profit share of the other party, although the overall efficiency of the supply chain exhibits varying outcomes. (4) In a supply chain considering fairness concerns and the existence of a negotiation breakdown point, the equilibrium solution cannot coordinate the supply chain. However, through contract design with price subsidies, the supply chain can achieve coordination.
Finally, the research prospects are introduced: firstly, the negotiation breakdown point is introduced into other common contracts, such as revenue sharing contracts and quantity discount contracts, to discuss the decision-making and coordination of the supply chain; Second, other external factors can also be considered to drive reasonable profit distribution and promote contract coordination; Third, the supply chain structure can be extended to the situation of one retailer (supplier) to multiple suppliers (retailers) or even multiple suppliers to multiple retailers, making it more realistic.
Finally, the author discusses future research directions: (1) Introducing the negotiation breakdown point into other common contracts, such as revenue-sharing contracts and quantity discount contracts, to explore decision-making and coordination within the supply chain. (2) Considering other external factors that can drive reasonable profit distribution to promote contract coordination. (3) Expanding the supply chain structure to include scenarios with one retailer (supplier) dealing with multiple suppliers (retailers), or even multiple suppliers dealing with multiple retailers, to better reflect real-world conditions.
知识补充：Knowledge supplement
1、数量折扣契约和数量弹性契约 Quantity discount contracts and quantity flexibility contracts
Quantity discounts are also known as bulk pricing. This is a kind of price reduction given by a company to customers who buy a large number of products. Generally, the more you buy, the greater the discount, to encourage customers to increase their purchases, or to buy from one business in one place, or to buy in advance. Quantity discounts can be divided into two types: cumulative quantity discounts and one-time quantity discounts.
Quantity discount, also known as bulk pricing, is a price reduction given by companies to customers who purchase large quantities of a product. Generally, the larger the purchase volume, the greater the discount, encouraging customers to buy more, purchase exclusively from one company, or buy in advance. Quantity discounts can be divided into two types: cumulative quantity discounts and one-time quantity discounts.
Quantity elasticity contract means that the retailer's actual order quantity can be changed within a certain range on the basis of the order quantity submitted in advance, the retailer provides the supplier with an order quantity after predicting the next missale cycle, and the supplier organizes production based on this, and the retailer can only determine the final actual order quantity within the scope allowed by the supplier after obtaining the determined market demand, regardless of whether the final market demand is more than or lower than the retailer's forecast. At this point, the retailer and the supplier share the market risk.
Quantity flexibility contracts allow the retailer's actual order quantity to vary within a certain range based on the order quantity submitted in advance. After forecasting the demand for the next selling cycle, the retailer provides an order quantity to the supplier, who then organizes production based on this quantity. Once the retailer has obtained confirmed market demand, the final actual order quantity can only be determined within the range allowed by the supplier, regardless of whether the final market demand exceeds or falls short of the retailer's forecast. In this scenario, both the retailer and the supplier share the market risk.
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References:[1] Nie Tengfei, He Biyu, Du Shaofu. Supply Chain Operations Considering Equity Concerns and Negotiation Breakdown Points [J]. Journal of Management Science, 2017, 20(10): 92-102.
文案|Whisper
排版|Whisper
Audit|Wang