Title: Supply chain alliance member selection and the further contract analysis under networked manufacturing

Authors: Ke Jing, Liang Tang, Xinan Zhao

Addresses: School of Business Administration, Northeastern University, Shenyang 110004, PR China. ' Shenyang MTR Metro Corporation, Shenyang 110013, PR China. ' School of Business Administration, Northeastern University, Shenyang 110004, PR China

Abstract: Alliance member selection is the precondition to implement networked manufacturing. For three kinds of the evaluation indexes: accurate number type, interval number type and fuzzy number type, the TOPSIS mixed multidimensional decision-making method is put forth. The method uses factors such as price, quality, network information level, networked condition and credit in alliance member selection to evaluate the alliance member. After selecting the alliance member, we study a two-stage supply chain coordination model based on revenue-sharing contract. Through Stackelberg game analysis, some factors such as revenue-sharing proportion, order quantity, wholesale price were discussed. Then the coordination strategies were found. Numerical simulation based on MATLAB was used to get the results in this kind of contract. It indicates that the supply chain has great profit loss when punishment factor existed.

Keywords: networked manufacturing; alliance member selection; TOPSIS; technique for order preference by similarity to ideal solution; revenue-sharing; contracts; SCM; supply chain management; mixed multidimensional decision-making; relative nearness degree; ideal project; genetic algorithms; coordination strategies; evaluation indexes; accurate numbers; interval numbers; fuzzy numbers; Stackelberg game analysis; order quantities; wholesale prices; MATLAB; matrix laboratory; profitability; punishment factors; services operations; services management; informatics.

DOI: 10.1504/IJSOI.2010.031045

International Journal of Services Operations and Informatics, 2010 Vol.5 No.1, pp.3 - 19

Available online: 19 Jan 2010 *

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