Altruistic behavior in supply chain management
Boute, Robert Lambrecht, Marc
Boute, Robert
Lambrecht, Marc
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Publication Type
Magazine article
Editor
Supervisor
Publication Year
2007
Journal
Tijdschrift voor Economie en Management
Book
Publication Volume
52
Publication Issue
3
Publication Begin page
499
Publication End page
513
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Abstract
Supply chain collaboration creates a gain (a surplus) compared to uncoordinated or disconnected supply chain policies. In this paper we review policies to allo cate the “gain” to supply chain members so that each firm’s objective becomes aligned with the supply chain’s objective. In other words we examine conditions for a successful implementation of “altruistic” behavior (that means a policy that is not optimal for itself, but optimal for global performance). Several policies are examined, such as alignment of replenishment rules, vendor managed inventory, buyback contracts, revenue sharing contracts and quantity discount contracts.
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Keywords
Logistics Management