文档介绍:European Journal of Operational Research 123 (2000) 568±584
ate/dsw
Theory and Methodology
Coordinating an innovation in supply chain management
Bowon Kim *
Graduate School of Management, Korea Advanced Institute of Science and Technology (KAIST), 207-43 Cheongryangri Dongdaemoon,
Seoul 130-012, South Korea
Received 1 July 1998; accepted 1 January 1999
Abstract
The importance of a long-term relationship between a manufacturing ®rm and its supplier(s) has been emphasized in
the literature on supply chain management. Essential to such a relationship is the coordination among participants in a
supply chain. In order to sustain the relationship, the coordination should enhance the pro®tability of not only the
manufacturer, but also the supplier(s). In this paper, we consider a particular supply chain situation in which the
manufacturer coordinates, ., supports, its supplier's innovation that can eventually lead to supply cost reduction.
Developing a mathematical model, we show that although the coordination could improve the manufacturing ®rm's
own pro®tability, it might not be attractive to the supplier unless the supply cost reduction should ultimately increase
the market demand to a certain extent. Under particular circumstances, if the market demand stays constant, the
manufacturer's pro®t increase due to the coordination equals the amount of pro®t loss to the supplier. The analysis
presents exact mathematical criteria to determine whether the coordination strategy can be agreeable to both the
manufacturer and the supplier. Numerical examples are employed to show the applicability of the criteria. Ó 2000
Elsevier Science . All rights reserved.
Keywords: Purchasing; Supply chain management; Optimal control theory; Supplier innovation
1. Introduction lationship makes both the manufacturer and the
suppliers better o than when there is no such re-
Studies on supply chain management have lationship (Asanuma, 1989; Cusumano and Ta-