Capacity Allocation Mechanisms and Coordination in Supply Chain Under Demand Competition

Contents
1 Introduction
	1.1 Background
	1.2 State of Research
	1.3 Option/Reservation Contract
	1.4 Commitment Contract
	References
2 Managing Downstream Competition via Capacity Allocation in Symmetric Market
	2.1 Introduction
	2.2 Model Formulation
	2.3 Proportional Allocation Mechanism
		2.3.1 Retailers' Game
		2.3.2 Optimal Wholesale Price
	2.4 Lexicographic Allocation Mechanism
		2.4.1 Retailers' Game
		2.4.2 Optimal Wholesale Price
	2.5 Comparisons
	2.6 The Case with Multiple Retailers
		2.6.1 Proportional Versus Lexicographic Mechanisms Under Multiple Retailers
		2.6.2 Nonlinear Wholesale Price
	2.7 Concluding Remarks
	References
3 Capacity Allocation with Demand Competition in Asymmetric Market
	3.1 Introduction
	3.2 Model Formulation
	3.3 Uniform Allocation Mechanism
		3.3.1 Equilibrium Analysis Under Uniform Allocation
		3.3.2 Supplier's Decisions Under Uniform Allocation
	3.4 Proportional and Lexicographic Allocation Mechanisms
	3.5 Comparison of Three Mechanisms
	3.6 An Arbitrary Number of Retailers
	3.7 Concluding Remarks
	References
4 Allocating Capacity with Demand Competition: Fixed Factor Allocation
	4.1 Introduction
	4.2 Model Description
	4.3 Retailers' Decisions
		4.3.1 Retailer 1's Best Response Function
		4.3.2 Retailer 2's Best Response Function
		4.3.3 Nash Equilibrium
	4.4 Supplier's Decision
	4.5 Impacts of Fixed Factor α
	4.6 Comparison with Centralized Supply Chain
	4.7 Comparison with Other Allocations
	4.8 Optimal Capacity Choice
	4.9 Concluding Remarks
	References
5 Fixed Allocation of Capacity for Multiple Retailers Under Demand Competition
	5.1 Introduction
	5.2 Model Description
	5.3 Optimal Strategies Under Fixed Allocation
		5.3.1 Nash Equilibrium
		5.3.2 Supplier's Decision
	5.4 Impacts of Fixed Proportions
	5.5 Comparison with Proportional Allocation
	5.6 Comparison with Centralized Supply Chain
	5.7 Extension: Case with Retailers' Capacity Hoarding
	5.8 Concluding Remarks
	References
6 Supply Chain Coordination Through Capacity Reservation Contract and Quantity Flexibility Contract
	6.1 Introduction
	6.2 Model Setting
	6.3 Capacity Reservation Contract
		6.3.1 Construction Decision of Manufacturer
		6.3.2 Reservation Decision of Retailer
		6.3.3 The Benefit of the Capacity Reservation Contract
		6.3.4 Design Parameters for Channel Coordination
	6.4 Quantity Flexibility Contract
		6.4.1 Construction Decision of Manufacturer
		6.4.2 Reservation Decision of Retailer
		6.4.3 The Benefit of the Quantity Flexibility Contract
		6.4.4 Design Parameters for Channel Coordination
	6.5 Comparison Between Quantity Flexibility Contact and Capacity Reservation Contract
		6.5.1 Comparison Without Coordination
		6.5.2 Profit Distribution Under Coordination
	6.6 Extension
		6.6.1 Negotiation for Setting Contract Parameters
		6.6.2 Correlation Between Demand and Retail Price
	6.7 Concluding Remarks
	References
7 Outsourcing Decision and Order Policy with Forecast Updating Under Capacity Reservation Contract
	7.1 Introduction
	7.2 Model Formulation
	7.3 Centralized System
	7.4 Decentralized System
		7.4.1 Retailer's Optimal Decision
		7.4.2 Optimal Strategy for the Supplier
	7.5 Numerical Studies
		7.5.1 Analysis of Players' Strategies
	7.6 Concluding Remarks
	References