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Abstract An OEM supply chain may suffer a loss due to the random supply coming from the insufficient capacity of suppliers and the random demand resulting from the difficulty to accurately forecast the sales. In order to make the optimal ordering and producing decisions in such condition, we model Stackelberg game between multiple suppliers and one original equipment manufacturer. Then, using the centralized setting as a bench mark, we propose a contract, which combines revenue sharing and surplus purchase, to achieve coordination in OEM supply chain. Through adjusting the contract’s parameters, the decentralized profit can be improved to the centralized maximum profit.
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Received: 29 January 2013
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2013, Vol. 10 
