Price competition, cost and demand disruptions and coordination of a supply chain with one manufacturer and two competing retailers **.

From: Omega | Date: October 1, 2008| Author: Qi, Xiangtong; Xiao, Tiaojun | Copyright information

This paper studies the coordination of a supply chain with one manufacturer and two competing retailers after the production cost of the manufacturer was disrupted. We consider two coordination mechanisms: an all-unit quantity discount and an incremental quantity discount. For each mechanism, we develop the conditions under which the supply chain is coordinated and discuss how the cost disruption may affect the coordination mechanisms. For the all-unit quantity discount scheme, we find that...

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