Abstract
Recently, many products have been sold through retail stores and direct sales via the Internet. For dual-channel supply chains, Chiang and Monahan (2010) and Chiang (2010) have proposed an inventory control policy; however, they assumed one-for-one replenishment and short replenishment lead times. For single-channel supply chains with long and uncertain replenishment lead times, Liu et al. (2009) have introduced tracking information into inventory control. However, they did not consider the cost of tracking information. Therefore, in this paper, a Markov chain model for dual-channel supply chains with long and uncertain replenishment lead times is developed, and an inventory control policy is proposed that considers tracking information and its cost. The performance of the proposed policy is evaluated and compared with two policies, one without tracking information and the other without reduplicated normal replenishment. The results show the effectiveness of the proposed policy.
Highlights
Real supply chains in industries have become more and more complicated, and more and more papers on supply chains have been published
Many manufacturers have sold their products through retail stores and in direct sales via the Internet
It is necessary to consider reduplicating replenishment and emergency replenishment to deal with demands that occur during long and uncertain replenishment lead times in a Markov chain model of dual-channel supply chains
Summary
Real supply chains in industries have become more and more complicated, and more and more papers on supply chains have been published. It is necessary to consider reduplicating replenishment and emergency replenishment to deal with demands that occur during long and uncertain replenishment lead times in a Markov chain model of dual-channel supply chains. For single-channel supply chains, they showed that they could determine the optimal ordering time and order quantity by using tracking information, even if the replenishment lead time from the warehouse to the retail store was long and uncertain. A Markov chain model that considers demand arrivals during long and uncertain replenishment lead times for dual-channel supply chains and an inventory control policy that uses tracking information are proposed in this paper. D, e, and f: coefficients that determine the states of starting an emergency replenishment
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