A rewarding-punishing coordination mechanism based on Trust in a divergent supply chain
Introducing trust as a non-pecuniary factor to develop coordination mechanisms. Formulating the model as a non-linear constrained optimization problem. Transforming the model into a quadratic mixed-integer programming problem. Proposing a trust-based mechanism with capability to punish or reward agents. Simulating four instances of the supply chain regarding market and demand factors.
coordination trust divergent supply chain supply chain management contract design monte carlo simulation