Proceedings of the 2019 5th International Conference on Humanities and Social Science Research (ICHSSR 2019)

The Impact of Opportunism of the Manufacturer on Revenue Allocation in Supply Chain

Authors
Xinyu Xu
Corresponding Author
Xinyu Xu
Available Online May 2019.
DOI
10.2991/ichssr-19.2019.9How to use a DOI?
Keywords
Opportunism; Supply Chain; Effort Level; Profits.
Abstract

The opportunism is a common risk in supply chain, which could include fraud, conceal or other negative behaviours. The reason of opportunism is multiple, and the most important reasons can be summarized as human nature, trade environment and information asymmetry. Due to the potential risk that opportunism will create, this field have attracted scholars to study for a long time. However, based on the literature, the gap of this field is that, scholars seldom consider about objective conditions and how these conditions impact on opportunism. Therefore, this research will focus on this field, assume a single manufacturer-retailer condition, and then set up a theoretical model which considers how the manufacturer's effort level impacts on profits, and how this situation will influence decisions that are made by the manufacturer and the retailer. Based on Monte Carlo simulation by software Crystal Ball, the result shows that different manufacturer's effort level will lead to different profits. However, manufacturer and retailer cannot achieve their largest profits in the same time. Besides, if they want to achieve the highest total profits, then both of them have to sacrifice part of their profits. Therefore, opportunism may be showed up. To prevent this happening, the optimal method is through norm-based trust mechanism, rather than just sign for contracts.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2019 5th International Conference on Humanities and Social Science Research (ICHSSR 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
May 2019
ISBN
978-94-6252-730-0
ISSN
2352-5398
DOI
10.2991/ichssr-19.2019.9How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Xinyu Xu
PY  - 2019/05
DA  - 2019/05
TI  - The Impact of Opportunism of the Manufacturer on Revenue Allocation in Supply Chain
BT  - Proceedings of the 2019 5th International Conference on Humanities and Social Science Research (ICHSSR 2019)
PB  - Atlantis Press
SP  - 42
EP  - 47
SN  - 2352-5398
UR  - https://doi.org/10.2991/ichssr-19.2019.9
DO  - 10.2991/ichssr-19.2019.9
ID  - Xu2019/05
ER  -