cy such as double marginalization still exists. In addition, since the functions of marketing and operations are separated in a drop-shipping supply chain, the retailer has better information about his customer demand, but does not bear inventory risks. He always has incentives to inflate his demand, therefore, the supplier would not trust the demand information provided by the retailer. In such an asymmetric information case, how we can overcome the channel inefficiency as well as achieve truthful information sharing is very important. Under such a drop-shipping scenario, the supply contracts that coordinate the traditional supply chains are no longer suitable. Our objective in this study is to find out a new mechanism—commitment-penalty contracts, to coordinate the drop-shipping supply chain as well as achieve truthful information sharing. The organization of this chapter is as follows. In Section 5.2 we review the literature. In Section 5.3 we describe our model and introduce the commitment-penalty contracts. We also provide an optimal performance benchmark in a centralized system. In Section 5.4 we show that the commitment-penalty contract can coordinate the supply chain in full demand information case. In Section 5.5 we propose a menu of commitment-penalty contracts, under which the retailer would reveal his demand information in asymmetric demand information case and the supplier can maximize her expected profit. A numerical analysis is presented in Section 5.6. A brief英语论文网 【http://www.51lunwen.org】 summary is provided in Section 5.7.
Chapter 6 Conclusion and future research
This chapter concludes the findings of this research. This chapter also suggests directions for future research. This dissertation deals with two problems arising in supply chain management. One problem is to study an information updated supply chain with service level constraints. The other is to investigate the contracting issues in drop-shipping supply chains with asymmetric demand information. Analytical frameworks are developed and analyzed for both problems.
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