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Information Technology Journal

Year: 2013 | Volume: 12 | Issue: 20 | Page No.: 5719-5724
DOI: 10.3923/itj.2013.5719.5724
An Incentive Payment Solution for Service Providers in Service Supply Chains
Haihong Yu

Abstract: To achieve the maximized benefit in service supply chains, an effective incentive to influence service provider’s behavior is indispensable. This incentive could be implemented via the payment to suppliers. In this study, the optimal incentive payment solution for service suppliers in service supply chains is considered and the impacts of relevant parameters analyzed. The study of incentive payment includes optimal incentive payment function, the precondition of incentive, profit allocation control, etc. The results show that an effective incentive payment will bring additional benefits for the whole supply chain. And the higher the cost of the service provider’s high effort is the less effective the incentive payment solution is. Also the bigger the sensitivity of market demand to service provider’s effort level is the further the originator need to implement such incentive solution.

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How to cite this article
Haihong Yu , 2013. An Incentive Payment Solution for Service Providers in Service Supply Chains. Information Technology Journal, 12: 5719-5724.

Keywords: Supply chain, service operation, incentive payment and optimization

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