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.

Highlights

  • With the rapid development of global especially Chinese aviation industry, the limitation of the present air material management is more and more obvious

  • Due to the complex nature of the changeable air material demand and supply process, this paper introduces the coordination mechanism of revenue-sharing contract into air material supply chain, extends the coordination mode, establishes the coordination models of air material supply chain for the sake of stock-out compensation and inventory costs, designs reasonable contract form and contract parameters, presents the collaborative decision-making mechanism for the optimal performance of air material supply chain to ensure the optimization of the entire state of the supply process, the production and the ordering storage of each node

  • C1, no matter the demand for turnover material agrees with Poisson Distribution or Normal Distribution, the optimal production QS of the manufacturer, the optimal ordering quantity QI of pooling provider and the optimal yield QT of supply chain composed of manufacturer and pooling provider can be respectively got via

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Summary

Introduction

With the rapid development of global especially Chinese aviation industry, the limitation of the present air material management is more and more obvious. Due to the present informatization and high-integration of supply chain, the production and ordering storage cannot achieve optimal state so that a great number of air materials are wasted, it is urgent to establish the collaborative decision-making mechanism between aviation departments and manufacturers from the angle of collaborative management of supply chain. Due to the complex nature of the changeable air material demand and supply process, this paper introduces the coordination mechanism of revenue-sharing contract into air material supply chain, extends the coordination mode, establishes the coordination models of air material supply chain for the sake of stock-out compensation and inventory costs, designs reasonable contract form and contract parameters, presents the collaborative decision-making mechanism for the optimal performance of air material supply chain to ensure the optimization of the entire state of the supply process, the production and the ordering storage of each node

Air Material Demand and Supply Mode
The Solving of the Coordination Model of Supply Chain
IC Q2
Channel Coordination Condition
Profit Distribution Condition
Collaborative Decision-Making Algorithm for Manufacturer and Pooling Provider
Application Analysis
Findings
Conclusion
Full Text
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