Coordinating Contracts in Cooperative Supply Networks

Abstract

The goal of the research paper is methodology improvement of contract selection in cooperative supply networks for achieving better supply network economic performance. The tasks of the study are: improvement of the supply network model based on the examination and classification of supply chain relationships recognized in literature; improvement of methodology for contract selection in a supply network based on examination and categorization of supply chain contracts; development of a software tool for quantitative testing of an improved methodology on real life cases. As the main results of the study are: standard newsvendor model improvement in order to reflect the situation of competing retailers, referring to the supply network concept; methodology of coordination contracts decision-making improvement by devising a mechanism for contract selection for the case of multi-echelon supply network with two competing retailers enabling coordination at a system-wide level; empirical proof of economic performance improvement potential of the improved methodology from testing it on the real-life cases of Audi Russia, Heineken Saint-Petersburg and ProtechDry Portugal.