Science Research Management ›› 2012, Vol. 33 ›› Issue (2): 139-146.

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Comparative analysis on coordination strategies between informationsharing and joint decision-making

Lu Yali   

  1. School of Management and Economics, North China University of Water Resourcesand Electric Power, Zhengzhou 450011, China
  • Received:2010-04-12 Revised:2011-01-25 Online:2012-02-27 Published:2012-02-28

Abstract: Information sharing under the distributed control and joint decision-making under the centralized control are two important strategies in the supply chain coordination. Based on the Stackelberg game model between manufacturer and retailer in supply chain system, under the condition of stochastic product demand, the effects of information sharing coordination and joint decision-making coordination on optimum wholesale price, optimum order quantity, and profits of manufacturer, and retailer and supply chain system are studied. Then the conditions for information sharing coordination are analyzed, and two partition methods for the profits of supply chain system, that is, scale factor method and wholesale price consultation method are put forward. After that, the analysis results are further confirmed though calculation and simulation with stochstic product demand obeying uniform distribution. The results show that information sharing for manufacturer is always beneficial, and manufacturer is able to find its optimum wholesale price and maximize its profits. The conditions of information sharing are that the retailer profits could be improved. The joint decision-making coordination is able to maximize the profits of supply chain system. There exists wider interval of scale factor and wholesale price for the profits partition, in which the scale factor or the wholesale price is able to be used in order to achieve win-win results of manufacturer and retailer. The profits of supply chain system will increase with the increase of the expectation of the stochastic product demand, and decrease with the increase of standard deviation of that. From the point of view of maximum profit, joint decision-making coordination is better than information sharing coordination.

Key words: information sharing, joint decision-making, supply chain coordination, Stackelberg game, stochastic demand

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