Component Production and Replenishment Policy in ATO Supply Chain Based on Bargaining Game
Li Yu-yu
Huang Bo
Abstract：A bargaining cooperative game model for assemble-to-order ( ATO) supply chain composed of a final product manufacturer and two suppliers is proposed to study the component production and replenish -ment policy and the corresponding profit-sharing policy .The effect of participant's bargaining power chain on the optimal solution is analyzed .It is found that ATO supply chain should raise the component produc-tion with the rise of the final product price , and reduce it with the rise of assembly cost of finished product or production cost of components .With the improvement of the bargaining power of final product manufac-turer to one supplier , the transfer price of components and profits of this supplier is reduced , while those of another supplier are increased at the same time .The expected profits of the final product manufacturer in-crease if its bargaining power is stronger than another supplier , and otherwise it reduces .
Keywords：assemble-to-order (ATO) supply chaincomponent production policycomponent replenish-ment policybargaining game
Publication Date：2014-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：7( 92-98 )