Abstract
Although supply chain efficiency has been discussed for a long time, the concept of power is rarely mentioned in related literature, and so does the power distribution within the supply chain. This paper studies the efficiency impact of different power distribution with a simple model, and points out that the profit-efficiency of the supply chain is closely related to the ratio of power between manufacturer and its retailer: the more powerful the retailer is, the more profit-efficiency the supply chain is. Meanwhile, the concentration vs. dispersion of the supply chain power configuration also affects the efficiency: the more dispersive supply chain power, the less efficiency, and the more concentrative supply chain power, the more efficiency.
Recommended Citation
Ye, Fu and Hong, Ling, "The Efficiency Impact of Power Distribution Within Supply Chains" (2002). PACIS 2002 Proceedings. 89.
https://aisel.aisnet.org/pacis2002/89