Mechanism of supply chain coordination based on price discount with privacy protection in one-supplier-one-buyer system

It is of great economic significance to optimize the total cost and improve the performance of the supply chain. In this paper, we assume that the market demand is random, and the seller and the buyer share information and make decisions together. We analyze the optimal joint order quantity under pr...

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Main Authors: Cui-Hua Xie, Jing-Chun Zhan, Le-Tian Zeng, Shao-Yong Han
Format: Article
Language:English
Published: Frontiers Media S.A. 2023-04-01
Series:Frontiers in Physics
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fphy.2023.1017251/full
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author Cui-Hua Xie
Jing-Chun Zhan
Le-Tian Zeng
Shao-Yong Han
Shao-Yong Han
Shao-Yong Han
author_facet Cui-Hua Xie
Jing-Chun Zhan
Le-Tian Zeng
Shao-Yong Han
Shao-Yong Han
Shao-Yong Han
author_sort Cui-Hua Xie
collection DOAJ
description It is of great economic significance to optimize the total cost and improve the performance of the supply chain. In this paper, we assume that the market demand is random, and the seller and the buyer share information and make decisions together. We analyze the optimal joint order quantity under probabilistic demand and design the quantity discount model and profit distribution mechanism. Under a certain quantity discount mechanism and profit distribution strategy, both the seller and the buyer can reduce costs. The quantity discount model and profit distribution mechanism designed require supply chain members to share information. In order to protect the privacy of members and improve the willingness of supply chain members to share information, we designed a privacy protection joint ordering policy protocol and privacy protection quantity discount policy based on Secure multiparty computation technology. Then, the joint ordering strategy, the privacy-preserving joint ordering strategy, and quantity discount protocol are numerically simulated. The numerical simulation results show that the privacy-preserving quantity discount coordination mechanism designed by us can reduce the cost of supply chain members to varying degrees and effectively protect the shared information of supply chain members. This work is helpful to the research of cost optimization of the system in complex supply chain systems.
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spelling doaj.art-02386d8e394f4fc0950cd3bc2bd72d3c2023-04-17T05:00:10ZengFrontiers Media S.A.Frontiers in Physics2296-424X2023-04-011110.3389/fphy.2023.10172511017251Mechanism of supply chain coordination based on price discount with privacy protection in one-supplier-one-buyer systemCui-Hua Xie0Jing-Chun Zhan1Le-Tian Zeng2Shao-Yong Han3Shao-Yong Han4Shao-Yong Han5School of Economics and Management, Wenzhou University of Technology, Wenzhou, ChinaSchool of Computing and Business, Universiti Teknologi Malaysia, Johor Bahru, MalaysiaSchool of Computing and Business, Universiti Teknologi Malaysia, Johor Bahru, MalaysiaSchool of Economics and Management, Wenzhou University of Technology, Wenzhou, ChinaPostdoctoral Scientific Research Workstation, Bank of Zhengzhou, Zhengzhou, ChinaSchool of Information Engineering and Technology, Changzhou Vocational Institute of Industry Technology, Changzhou, ChinaIt is of great economic significance to optimize the total cost and improve the performance of the supply chain. In this paper, we assume that the market demand is random, and the seller and the buyer share information and make decisions together. We analyze the optimal joint order quantity under probabilistic demand and design the quantity discount model and profit distribution mechanism. Under a certain quantity discount mechanism and profit distribution strategy, both the seller and the buyer can reduce costs. The quantity discount model and profit distribution mechanism designed require supply chain members to share information. In order to protect the privacy of members and improve the willingness of supply chain members to share information, we designed a privacy protection joint ordering policy protocol and privacy protection quantity discount policy based on Secure multiparty computation technology. Then, the joint ordering strategy, the privacy-preserving joint ordering strategy, and quantity discount protocol are numerically simulated. The numerical simulation results show that the privacy-preserving quantity discount coordination mechanism designed by us can reduce the cost of supply chain members to varying degrees and effectively protect the shared information of supply chain members. This work is helpful to the research of cost optimization of the system in complex supply chain systems.https://www.frontiersin.org/articles/10.3389/fphy.2023.1017251/fullsupply chain managementquantity coordinationprivacy protectionsecure multiparty computationprobabilistic demand
spellingShingle Cui-Hua Xie
Jing-Chun Zhan
Le-Tian Zeng
Shao-Yong Han
Shao-Yong Han
Shao-Yong Han
Mechanism of supply chain coordination based on price discount with privacy protection in one-supplier-one-buyer system
Frontiers in Physics
supply chain management
quantity coordination
privacy protection
secure multiparty computation
probabilistic demand
title Mechanism of supply chain coordination based on price discount with privacy protection in one-supplier-one-buyer system
title_full Mechanism of supply chain coordination based on price discount with privacy protection in one-supplier-one-buyer system
title_fullStr Mechanism of supply chain coordination based on price discount with privacy protection in one-supplier-one-buyer system
title_full_unstemmed Mechanism of supply chain coordination based on price discount with privacy protection in one-supplier-one-buyer system
title_short Mechanism of supply chain coordination based on price discount with privacy protection in one-supplier-one-buyer system
title_sort mechanism of supply chain coordination based on price discount with privacy protection in one supplier one buyer system
topic supply chain management
quantity coordination
privacy protection
secure multiparty computation
probabilistic demand
url https://www.frontiersin.org/articles/10.3389/fphy.2023.1017251/full
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AT shaoyonghan mechanismofsupplychaincoordinationbasedonpricediscountwithprivacyprotectioninonesupplieronebuyersystem
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