Managers can improve coordination within the supply chain by
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- For products where the firm has market power, coordination in the supply chain can be achieved and supply chain profits maximized through the use of
- For products where the firm has market power, two-part tariffs can be used to achieve coordination in the supply chain and maximize supply chain profits.
- Information makes the supply chain visible to a manager so that he can make decisions to improve the supply chain’s performance.
- For commodity products where price is set by the market, manufacturers can use lot size based quantity discounts to achieve coordination in the supply chain and decrease supply chain cost.
- Supply chain coordination improves if all stages of the chain take actions that together decrease total supply chain profits.