Searching for the best profit-sharing allocation in multi-echelon supply chain
by Nguyen Van Hop
European J. of Industrial Engineering (EJIE), Vol. 17, No. 1, 2023

Abstract: In this paper, we propose coordination procedures for a multi-echelon supply chain in which the appropriate profit-sharing rate is allocated for each supply chain member. The search process is first developed to maximise the total compromised profit of a two-member supply chain. From the achieved profit-sharing rate, the best ordering quantity is also determined. Then, a cascading procedure is also proposed for searching the best profit-sharing ratios for each member in the multi-echelon supply chain. Our proposed procedures are validated by comparing it with the fixed profit-sharing scheme. We have also investigated different scenarios to test the effect of demand variations on total cost at different profit-sharing rates. The obtained results are promising. [Submitted: 27 October 2020; Accepted: 22 January 2022]

Online publication date: Thu, 15-Dec-2022

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the European J. of Industrial Engineering (EJIE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com