Supply Chain Coordination Model Research Articles

Dual-channel Supply Chain Coordination Model Based on Seasonal Compensation

As fierce competition of market and rapid development of E-commerce, more and more companies have started to open a direct channel besides an existing retail channel. The performance of dual-channel, the choice of channel, channel conflict and channel coordination have been focused on. Based on the analysis of non-cooperative dual-channel supply chain coordination, the paper brings up dual-channel supply chain coordination model based on seasonal compensation. In cooperative dual-channel supply chain, when out of stock in direct channel, excess inventory of various retailers can be transshipped to direct channel according to coordination strategy. In this paper, cooperative dual-channel supply chain transshipment model was built to analyze optimal transshipment and coordination strategy. Study results showed that when coordinated, the profit of cooperative dual-channel supply chain is greater than non-cooperative's while the rate of out of stock decreases. So strategy of dual-channel supply chain coordination model based on seasonal compensation is able to enhance the supply-demand match and increase profit of the supply chain.

Procurement-distribution model for perishable items with quantity discounts incorporating freight policies under fuzzy environment

A significant issue of the supply chain problem is how to integrate different entities. Managing supply chain is a difficult task because of complex integrations, especially when the products are perishable in nature. Little attention has been paid on ordering specific perishable products jointly in uncertain environment with multiple sources and multiple destinations. In this article, we propose a supply chain coordination model through quantity and freight discount policy for perishable products under uncertain cost and demand information. A case is provided to validate the procedure.

The Impact of RFID Investment on Complex Product in Three-Level Assembly Supply Chain

Motivated by the complex product with the feature about error-prone assembly system and supply chain inventory inaccuracy, this paper elaborates on the impact of information technology investment on complex product by establishing a three-stage supply chain model involving two suppliers, one manufacturer, and retailer which carried out Stackelberg games. In addition, it not only compares the manufacturer and the retailer’s optimal decision and maximum profit under the situation of the information asymmetry and free information sharing, but also analyzes their market behavior and changes in market performance. Meanwhile, it points out that the downstream in supply chain masters more information about market demands compared to the upstream one. The optimal cost threshold values of technology investment are also examined both for the centralized and the decentralized scenarios utilizing quantitative and modeling methods. By analyzing and comparing the optimal profit with or without investment on information technology, it establishes a supply chain coordination model which boosts the application of information technology. At the same time, it offers the conditions on which the upstream and downstream enterprises can coordinate with one another. The results of this paper have contributed significantly to making the price and ordering decisions on whether RFID should be adopted among members of the supply chain. Finally, we present numerical analyses, and several extensions of the model are considered as well.

Coordination of a supply chain with one manufacturer and multiple competing retailers under simultaneous demand and cost disruptions

Abstract This paper develops a coordination mechanism for a supply chain consisting of one manufacturer and n Cournot competing retailers when the production cost and demands are simultaneously disrupted. This differs from traditional supply chain coordination models under a static case and the case with only demand or cost disruption. The coordination mechanism with revenue sharing is considered, and the effects of production cost and demand disruptions on revenue sharing contract are discussed to investigate the optimal strategies of players with disruptions. The penalty cost is introduced explicitly to obtain the production deviation cost caused by the disruptions. In this study, it is obtained that the coordination contract considering the production deviation cost differs from that without disruption. Besides that, the disruptions may affect the order quantities, wholesale prices as well as revenue sharing contract. Then, the optimal strategies for different disruption levels under the centralized decision-making mode are proposed. Concerning the decentralized mode, the improved revenue sharing contract can be used to coordinate the decentralized decision-making supply chain effectively. Finally, the theoretical results are illustrated by conducting some numerical examples.

Environmental performance measures for supply chains

Purpose – The paper seeks to develop an analytical decision model that is used to investigate the performance of a supply chain when product, process, and environmental quality characteristics are considered.Design/methodology/approach – Environmental performance measures and methods to quantify quality are reviewed and then used to develop a method to measure environmental quality and its associated costs. This was translated into a two‐level supply chain coordination model that captures most aspects of green supply chains. Numerical examples are provided and solved using Excel Solver enhanced with VBA codes.Findings – The results confirmed some findings in the literature that investing to reduce environmental costs improves environmental performance and increases total profits.Research limitations/implications – The environmental quality cost function that was used was of a form that guarantees a global optimal solution. A limitation is that the function may take more complex forms where different analy...

Research on Service Capacity Coordination Strategy in Product Servitization Supply Chain

This paper introduces a three-echelon product Service-oriented supply chain consisting of specialized service function provider, service integrator and customer. Service integrator purchases service capacity from specialized service function provider and sales the added service to customer facing with a price sensitive stochastic demand market. The purpose of service integrator is to meet expected profit maximization through the optimal service capacity order quantity and price of integrated services. Specialized functions service provider identifies the best service capacity price to maximize the expected profit. Establishing the revenue model and supply chain coordination model in product Service-oriented supply chain based on service capacity. Through the numerical example, we find that service capability has an important influence on product Service-oriented supply chain coordination performance.

Supply chain coordination model with controllable lead time and service level constraint

We consider the coordination issue in a decentralized supply chain composed of a vendor and a buyer in this paper. The vendor offers a single product to the buyer who is faced with service level constraint. In addition, lead time can be reduced by added crashing cost. We analyze two supply chain inventory models. The first one is developed under decentralized mode based on Stackelberg model, the other one is developed under centralized mode of the integrated supply chain. The solution procedures are also provided to get the optimal solutions of these two models. Finally, a price discount mechanism is proposed to induce both the vendor and the buyer to accept the centralized model. The feasibility and efficiency of the proposed models are manifested by numerical examples and some managerial implications are highlighted.

Supply chain coordination for a deteriorating product under stock-dependent consumption rate and unreliable production process

Article history: Received 1 July 2010 Received in revised form 2 October 2010 Accepted 4 October 2010 Available online 4 October 2010 This article develops a supply chain coordination model with a single-vendor and a singlebuyer. The vendor manufactures the product in lots and delivers to the buyer in equal shipments. The vendor’s production process is not perfectly reliable. During a production run, the process may shift from an in-control state to an out-of-control state at any random time and produces some defective items. The buyer whose demand is assumed to be a linear function of the on-hand inventory performs a screening process immediately after each replenishment. Moreover, the buyer’s inventory is deteriorated at a constant rate over time. The vendor-buyer coordination policy is determined by minimizing the average cost of the supply chain. It is observed from the numerical study that channel coordination earns significant cost savings over the non-coordinated policy. © 2011 Growing Science Ltd. All rights reserved.

Supply Coordination and Optimization Model of Assembly Supply Chain Based on Different Delivery Policies

After analysis and description of delivery policy 1 that the manufacturer takes charge of the cost caused by compressing lead time,and delivery policy 2 that the manufacturer and suppliers both takes charge of the cost,supply coordination model of assembly supply chain based on two-supplier and one manufacturer under different delivery policies are established.The stackelberg model of assembly supply chain based on two-suppliers and one-manufacturer is constructed according to policy 1 and the optimal decision of each side is given.According to policy 2 the joint inventory model of assembly supply chain based on two-suppliers and one-manufacturer system is built up,and the algorithm of optimal solution is given.Then range of the cost sharing coefficient is given after analysis of the situation that policy 2 is superior to policy 1,and then the coordination policy of asymmetric nash equilibrium is put forward based on adapted expected utility theory.The two delivery policies are compared and the sharing collaborative policy is proved effective in numerical example.

RETRACTED: Supply chain coordination models for newsvendor-type products: Considering advertising effect and two production modes

RETRACTED: Supply chain coordination models for newsvendor-type products: Considering advertising effect and two production modes

Wholesale Price for Supply Chain Coordination via Conditional Value-at-Risk Minimization

The theory of the conditional value-at-risk (CVaR) in financial risk management is considered in this paper to develop a model of supply chain coordination with a wholesale pricing policy. The proposed model solves the drawbacks of objective function in current supply chain coordination model. A numerical example is given to demonstrate the effectiveness of the proposed model. The following helpful conclusions are drawn from the paper: with the increase of the degree of risk averting for supply chain individual member, the optimal order quantity of supply chain is decreasing, while the optimal profit is decreasing; If supplier’s risk averting degree increases, supplier has to increase wholesale price to achieve supply chain coordination; If retailer’s risk averting degree increases, supplier has to decrease wholesale price to achieve supply chain coordination.

Supply chain alliance member selection and the further contract analysis under networked manufacturing

Alliance member selection is the precondition to implement networked manufacturing. For three kinds of the evaluation indexes: accurate number type, interval number type and fuzzy number type, the TOPSIS mixed multidimensional decision-making method is put forth. The method uses factors such as price, quality, network information level, networked condition and credit in alliance member selection to evaluate the alliance member. After selecting the alliance member, we study a two-stage supply chain coordination model based on revenue-sharing contract. Through Stackelberg game analysis, some factors such as revenue-sharing proportion, order quantity, wholesale price were discussed. Then the coordination strategies were found. Numerical simulation based on MATLAB was used to get the results in this kind of contract. It indicates that the supply chain has great profit loss when punishment factor existed.

Supply chain coordination with flow networks

A mechanism for supply chain coordination models the entire supply chain with multiple members in four stages to satisfy customer demand with minimum total costs. Previous coordination mechanisms research applied restrictive assumptions on the number in the supply chain stages and members in each stage, disallowing a case of multi-product. Flow networks concept is proposes as a coordination mechanism for supply chains with multiple members, multiple stages and multi-products, where each product is composed of several basic components. A supply chain optimizer (SCO), actually an e-hub, gathers supply chain state information. After necessary computations, it informs members of the supply chain of optimal decisions for their orders. Results from sample cases using the mechanism show above 20% reduction in total costs of the supply chain.

Supply-chain coordination model with insufficient production capacity and option for outsourcing

In this paper, a mathematical model is developed to analyze the situation of lost sales from the supply-chain coordination perspective. In a two-stage supply chain, the supplier’s production capacity is less than the annual demand of the retailer. The supplier may recover the deficit by procuring the same from an external source at a certain price and then supplying it back to the retailer. Here, the conditions have been derived when the practice of external procurement may be a viable solution to enhance the profits of both the supplier and retailer in a coordinated approach. A numerical example is carried out to illustrate the efficacy of the developed model and the procedure developed for solving the problem.

Coordination of supply chain after demand disruptions when retailers compete

This paper investigates the coordination mechanism for a supply chain with one manufacturer and two competing retailers when the demands are disrupted. This differs from conventional supply chain coordination models under a static case. We will consider different scenarios of the problem: the production deviation cost may be either incurred to the manufacturer or to the retailers; the supply chain is to be coordinated by either a linear quantity discount schedule or an all-unit quantity discount schedule. In each case, we discuss how the supply chain is coordinated, and how it differs from the original planned scheme. We obtain some interesting managerial observations; for example, the discount slope is unchanged when the manufacturer bears the production deviation cost, but may change when the retailers bear the deviation cost. Some numerical examples are given to illustrate the theoretical results.