Intrafirm Incentives and Supply Chain Performance

Companies in many industries have begun to realize that conflicts of interest among the various parties in a supply chain can engender operationally inefficient behavior. Consequently, many researchers have become interested in identifying and evaluating methods of coordinating supply chains in which multiple decision makers pursue individual agendas (cf. [32]). The typical approach in the OM literature is to partition a traditional inventory model into a number of subproblems, each representing the decisions and objectives of a distinct organization. Most commonly, the supply chain is assumed to contain just two firms, e.g., a manufacturer and a retailer. The analysis then proceeds to pinpoint the root causes of inefficiency, and recommend mechanisms for appropriately adjusting individual incentives.

[1]  J. Spengler.  Vertical Integration and Antitrust Policy , 1950, Journal of Political Economy.

[2]  Herbert E. Scarf,et al.  Studies in applied probability and management science , 1962 .

[3]  A. M. Geoffrion.  Stochastic Programming with Aspiration or Fractile Criteria , 1967 .

[4]  B. Ismail,et al.  OPTIMIZING AND SATISFICING IN STOCHASTIC COST‐VOLUME‐PROFIT ANALYSIS , 1979 .

[5]  A. Atkinson.  INCENTIVES, UNCERTAINTY, AND RISK IN THE NEWSBOY PROBLEM , 1979 .

[6]  R. Norland.  REFINEMENTS IN THE ISMAIL‐LOUDERBACK STOCHASTIC CVP MODEL* , 1980 .

[7]  Hon-Shiang Lau.  SOME EXTENSIONS OF ISMAIL‐LOUDERBACK'S STOCHASTIC CVP MODEL UNDER OPTIMIZING AND SATISFICING CRITERIA* , 1980 .

[8]  Hon-Shiang Lau.  The Newsboy Problem under Alternative Optimization Objectives , 1980 .

[9]  E. Sankarasubramanian,et al.  Note-Note on Optimal Ordering Quantity to Realize a Pre-Determined Level of Profit , 1983 .

[10]  J. Tirole.  The Theory of Industrial Organization , 1988 .

[11]  A. Lau,et al.  MAXIMIZING THE PROBABILITY OF ACHIEVING A TARGET PROFIT IN A TWO‐PRODUCT NEWSBOY PROBLEM* , 1988 .

[12]  Amy Hing-Ling Lau,et al.  The Newsboy Problem With Price-Dependent Demand Distribution , 1988 .

[13]  George L. Nemhauser,et al.  Handbooks in operations research and management science , 1989 .

[14]  Amy Hing-Ling Lau,et al.  Some Analytical Results for a Two‐Product Newsboy Problem , 1990 .

[15]  W. V. Harlow.  Asset Allocation in a Downside-Risk Framework , 1991 .

[16]  Amy Hing-Ling Lau,et al.  A Two-Product Newsboy Problem with Satisficing Objective and Independent Exponential Demands , 1991 .

[17]  J. Zimmerman.  Accounting for Decision Making and Control , 1994 .

[18]  David W. Blackwell,et al.  Accounting information and internal performance evaluation Evidence from Texas banks , 1994 .

[19]  G. Ryzin,et al.  Optimal dynamic pricing of inventories with stochastic demand over finite horizons , 1994 .

[20]  Richard G. Sloan,et al.  Annual bonus schemes and the manipulation of earnings , 1995 .

[21]  Jennifer J. Gaver,et al.  Additional evidence on bonus plans and income management , 1995 .

[22]  M. Khouja.  The newsboy problem under progressive multiple discounts , 1995 .

[23]  Evan L. Porteus,et al.  Chapter 7.( TGM) Supply Contracts with Quantity Commitments and Stochastic Demand by Ravi Annupindi & Yehuda Bassok Chapter 8. ( TGM) Supply Chain Contracting and Coordination with Stochastic Demand , 1996 .

[24]  Michael J. Magazine,et al.  Quantitative Models for Supply Chain Management , 1998 .

[25]  S. Gilbert,et al.  Note. the Role of Returns Policies in Pricing and Inventory Decisions for Catalogue Goods , 1998 .

[26]  Maqbool Dada,et al.  Pricing and the Newsvendor Problem: A Review with Extensions , 1999, Oper. Res..

[27]  S. Nahmias,et al.  Modeling Supply Chain Contracts: A Review , 1999 .

[28]  Robert F. Bordley,et al.  Decision analysis using targets instead of utility functions , 2000 .