Volume 5 Issue 4
Dec.  2012
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Zhi-song CHEN, Hui-min WANG. 2012: Optimization and coordination of South-to-North Water Diversion supply chain with strategic customer behavior. Water Science and Engineering, 5(4): 464-477. doi: 10.3882/j.issn.1674-2370.2012.04.010
Citation: Zhi-song CHEN, Hui-min WANG. 2012: Optimization and coordination of South-to-North Water Diversion supply chain with strategic customer behavior. Water Science and Engineering, 5(4): 464-477. doi: 10.3882/j.issn.1674-2370.2012.04.010
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Optimization and coordination of South-to-North Water Diversion supply chain with strategic customer behavior

doi: 10.3882/j.issn.1674-2370.2012.04.010
  • 1.

    Business School, Nanjing Normal University, Nanjing 210023, P. R. China

  • 2.

    State Key Laboratory of Hydrology-Water Resources and Hydraulic Engineering,  Hohai University, Nanjing 210098, P. R. China

Funds:  This work was supported by the National Natural Science Foundation of China (Grants No. 50379009, 90924027 and 41101509), the National Social Science Foundation of China (Grant No. 10AJY005), and the Research Innovation Program for College Graduates of Jiangsu Province of 2009 (Grant No. CX09B_057R).
More Information
  • Corresponding author: Hui-min WANG
  • Received Date: 2011-05-17
  • Rev Recd Date: 2011-10-25
    Abstract
  • The South-to-North Water Diversion (SNWD) Project is a significant engineering project meant to solve water shortage problems in North China. Faced with market operations management of the water diversion system, this study defined the supply chain system for the SNWD Project, considering the actual project conditions, built a decentralized decision model and a centralized decision model with strategic customer behavior (SCB) using a floating pricing mechanism (FPM), and constructed a coordination mechanism via a revenue-sharing contract. The results suggest the following: (1) owing to water shortage supplements and the excess water sale policy provided by the FPM, the optimal ordering quantity of water resources is less than that without the FPM, and the optimal profits of the whole supply chain, supplier, and external distributor are higher than they would be without the FPM; (2) wholesale pricing and supplementary wholesale pricing with SCB are higher than those without SCB, and the optimal profits of the whole supply chain, supplier, and external distributor are higher than they would be without SCB; and (3) considering SCB and introducing the FPM help increase the optimal profits of the whole supply chain, supplier, and external distributor, and improve the efficiency of water resources usage.

     

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