Paper Title
COORDINATION WITH MULTIPLE FARE BREAKS FOR TRANSPORTATION IN TWO-ECHELON SUPPLY CHAINS

Abstract
Abstract - This study considers a supply chain in which a supplier delivers one single product to a retailer by carriers with different capacities to examine the determination of the optimal delivery strategy for coordination, as the retailer’s demand is either under or over the capacity of the supplier’s carriers. A quantity discount coordination mechanism with a contractual agreement between the supplier and retailer is used, in which different possible combinations of carriers for delivery are considered to enhance the profits of both parties. The supplier can increase its profit, by adjusting its discount offer to encourage the retailer to either increase or decrease the order quantity. The retailer can also benefit by taking the discount offer to reduce the related costs, and thus enhance profits after coordination. Keywords - Supply Chain Coordination; Transportation Combination Strategy; Multiple Fare Breaks.