A Study of Supply Chain Coordination of Perishable Products under the Shortage Cost Sharing with Demand Information Updating
Liu Ying-han
Wu Long-sheng
Abstract：In a two-stage supply chain for perishable goods constituted by a single market manufacturer and retailers who are updating the market needs at the beginning of sales , manufacturers adopt a two-stage pro-duction which only allows the retailers to make the order once , and manufacturers and retailers share the shortage cost in case of the shortage situation .Analysis is made to indicate how the level of shortage cost-sharing impact the supply chain , and examples are used to verify the results .Research shows that there is a positive correlation between the level of shortage cost-sharing and ordering quantity , and a negative cor-relation with the retailers profit .Through the introduction of the option contract , the supply chain achieves Pareto improvement .
Keywords：supply chainoption contractsshortage cost sharingperishable goodsdemand information updating
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：6( 118-123 )