A Comparative Analysis of Supply Chain′s Collaborative Motivation under Different Price-dependent Demand Functions
Sun Cai-hong
Tian Zhen-zhen
Yu Hui
Abstract：The existence of the“double marginalization effect” disenables the wholesale price contract to coordinate the supply chain, resulting in the formation of supply chain′s collaborative motivation.A dis-cussion is conducted on whether the differences among price-dependent demand functions can lead to dif-ferent levels of collaborative motivation.By building a two-echelon supply chain system of five typical price-dependent demand functions under the wholesale price contract, it is found that generally the supply chain efficiency is between 73.5%~83%, but different price-dependent demand functions may result in significant differences in collaborative motivation.In exceptional circumstances, the supply chain efficien-cy is close to 100% or 0.Because of the coordination costs, it is important to choose the collaborative ways to distinguish the types of price-dependent demand function.
Keywords：collaborative motivationprice-dependent demand functionsupply chain efficiencywhole-sale price contract
Publication Date：2015-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：8( 58-65 )