Toward complexity: The impact on the traditional supply chain management by decentralized control - A view from a Supply and Demand Network (SDN)

In the overall control of a classic sense, the producers in the traditional supply chain can have control over the sales agents or retailers and reach the stable equilibrium by wholesale-price plus subsidy contracts. However, when things processed are complex and decision-making decentralizes in var...

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Bibliographic Details
Published in2009 IEEE 16th International Conference on Industrial Engineering and Engineering Management pp. 1652 - 1656
Main Authors Jianjia He, Fuyuan Xu
Format Conference Proceeding
LanguageEnglish
Published IEEE 01.10.2009
Subjects
Assembly
Complexity
Contracts
Control systems
Costs
Decision making
Decision-making Period
Distributed control
Production
Supply and demand
Supply Chain
Supply Chain Contract
Supply chain management
Supply chains
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Summary:In the overall control of a classic sense, the producers in the traditional supply chain can have control over the sales agents or retailers and reach the stable equilibrium by wholesale-price plus subsidy contracts. However, when things processed are complex and decision-making decentralizes in various system nodes, the traditional description is definitely inadequate. Thus, this article discusses the impact of the decentralized decision-making and decision-making period on the supply chain and proves that, as a result of the impact, the supply chain system cannot always be optimal.
ISBN:1424436710
9781424436712
DOI:10.1109/ICIEEM.2009.5344359