Journal
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
Volume 134, Issue 1, Pages 262-270Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.ijpe.2011.07.007
Keywords
Supply chain; Competition; Coordination; Quality improvement
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Funding
- National Natural Science Foundation of China [70871107, 70731003]
- China Postdoctoral Science Foundation [20060400103l]
- Chinese Academy of Sciences [KACX1-YW-0906]
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In this study, we consider quality improvement in a given segment of the market, shared by two supplier-manufacturer supply chains which offer a given product at the same price but compete on quality. The mechanism on the selection of supply chain structures and quality improvement strategies of the two supply chains is described. In particular, we analyze three possible structure combinations: two integrated supply chains, two decentralized supply chains, and one integrated and one decentralized supply chains. Between the supply chains, Nash's non-cooperative game is implemented. Numerical experiments illustrate the mechanism and some related issues are discussed. (C) 2011 Elsevier B.V. All rights reserved.
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