• Proceedings of the Korean Operations and Management Science Society Conference
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• 2007.11a
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• pp.104-107
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• 2007

In this paper, we propose the coordination scheme in a single-manufacturer-multiple-retailer supply chain system. Traditionally, the bargaining power of the single manufacturer is superior to those of retailers. The business environment supported by the e-business scheme may give rise to new business behavior. The multitude of retailer requests the manufacturer to relax the his unilateral lot-sizing policy while they are willing to compensate more than the manufacturer's expected loss caused by abandon his superior bargaining power. The side payment aggregated by the multiple retailers is transferred to the manufacturer according to the degree of the manufacturer's relaxation from the current unilateral lot-sizing policy.