Values of the Balanced Decision-Making between Supply Chain Partners

Cited 0 time in webofscience Cited 0 time in scopus
  • Hit : 559
  • Download : 732
Coordination between supply chain partners is viewed critical to effective supply chain management. In many situations such as mutual investments or developing infrastructures for their operations related with each other, the coordination issue arises. Depending on the bargaining power balance between them, it is determined who will be able to exert more influence in making decisions related with such coordination. We consider two cases of the decision-making structure in the context of a simple supply chain consisting of two players, i.e., (1) the first case in which a supply chain partner dominates the decision-making process and the other passively follows the dominant player's decision, and (2) the other case in which the two players share the decision-making process equally. We examine which of the cases is better for the companies and where comes the value of the better case. To answer the research questions, we set up an optimal control theory model and derive an analytical solution. The analysis outcome indicates that the shared decision-making in general produces better resuhs for both companies in the supply chain, and the value of the shared decision-making comes from more effective resource utilization than the dominated case.
Publisher
한국경영과학회
Issue Date
2005-05
Language
KOR
Citation

2005 한국경영과학회/대한산업공학회 춘계공동학술대회, pp.890 - 894

URI
http://hdl.handle.net/10203/9330
Appears in Collection
KGSM-Conference Papers(학술회의논문)
Files in This Item
2005-085.pdf(589.77 kB)Download

qr_code

  • mendeley

    citeulike


rss_1.0 rss_2.0 atom_1.0