Research Article

Coordination Mechanism of Supply Chain considering the Bullwhip Effect under Digital Technologies

Table 2

Model parameters and meaning.

ParametersDefinitionRemarks

Market demand
Amplified demand of retailer under the BWE
Retailer’s order quantity
Production quantity of supplier
The unit production cost of supplier
The unit cost of the retailer
Additional costs of introducing DTs in the supply chain
Retailer price
The impact parameter of the BWE on supply chain
Unit salvage value of unsold goods
Expectation
Profits
Reservation profits
Decision variablesDefinition
The application level of DTs in the supply chain
Revenue-sharing ratio
Cost-sharing ratio

We use subscripts , , and to represent the retailer, supplier, and supply chain, respectively. Similarly, superscripts , , , and are used to represent the scenario of the centralized decision-making, decentralized decision-making, cost-sharing contract, and revenue-cost-sharing contract, respectively.