Inventory Replenishment Model for Perishable Products in Two-Level Supply Chain

Abstract

The collaborative forecasting model is introduced into the inventory replenishment strategies of the supplier and the retailer. And the inventory model of two-level supply chain is constructed in our study. This two-level supply chain is consisted of one supplier and multiple retailers. We analyze the inventory replenishment model that maximizes the total profits of the whole supply chain, with respect to the price discount and out of stock for the supplier and the retailers, when the demand and the lead time are both stochastic.