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About Supply Chain Coordination Under Manufacturer's Supporting Innovation Activities
This document summarizes research on supply chain coordination when a manufacturer supports innovation activities by its supplier. Key points: 1) When market demand is constant, the game between the manufacturer and supplier is zero-sum, so a win-win outcome cannot be achieved through coordination. 2) When demand depends on price, the manufacturer prefers a higher price than the system optimum due to double marginalization, reducing supply chain profits. 3) A coordination scheme is proposed where the manufacturer subsidizes supplier innovation projects. This leads to lower supply costs and improves overall supply chain performance.
Detailed Information
| Author: | ['api-3851548'] |
|---|---|
| Publication Year: | 2008 |
| Pages: | 3 |
| Language: | English |
| Format: | |
| Price: | FREE |
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