Abstract
This paper investigates the impact of price competition and scale diseconomies on the choice of vertical control structure under the chain-to-chain model, and addresses the evolution process and the equilirum of the vertical structure from the aspect of manufacturer's performance and supply chain's performance. The centralized control structure is a dominant equilibrium for the supply chain and the manufacturer when the price competition is relatively weak, and the threshold intensity of price competition is influenced by the scale diseconomies. The decentralized control structure is a dominant equilibrium when the price competition is fiercest from the attitude of the supply chain's performance.
| Original language | English |
|---|---|
| Pages (from-to) | 193-198 |
| Number of pages | 6 |
| Journal | Kongzhi yu Juece/Control and Decision |
| Volume | 27 |
| Issue number | 2 |
| Publication status | Published - Feb 2012 |
| Externally published | Yes |
ASJC Scopus Subject Areas
- Control and Systems Engineering
- Software
- Control and Optimization
- Artificial Intelligence