Abstract

Due to the complex nature of air material demand and supply process, inventory pooling among a number of airlines is an intuitive way of exploiting the scale economies of availability services, and this paper analyzes the air material supply chain within sharing model and introduces revenue-sharing contract coordination mechanism into air material supply process. On the basis of analyzing stock-out compensation and inventory costs, it establishes the coordination model of air material supply chain whose demand quantity is in accordance with Poisson Distribution and Normal Distribution. The paper presents the collaborative decision-making algorithm for air material supply chain and verifies the coordination model by means of actually analyzing a numerical example for application. Based on a reasonable contract form and contract parameters, the optimization of production and ordering quantity and expected profit of each node on the air material supply chain can be achieved and hence the optimization of collaborative decision-making of air material supply and the performance of supply chain.

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