Supply chain coordination in vendor-managed inventory systems with stockout-cost sharing under limited storage capacity

2016 ◽  
Vol 248 (1) ◽  
pp. 95-106 ◽  
Author(s):  
Jun-Yeon Lee ◽  
Richard K. Cho ◽  
Seung-Kuk Paik
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Storage Capacity ◽  
Supply Chain Coordination ◽  
Inventory Systems ◽  
Vendor Managed Inventory

Optimizing vendor-managed inventory systems with limited storage capacity and partial backordering under stochastic demand

2020 ◽  
Vol 54 (1) ◽  
pp. 179-209
Author(s):  
Ata Allah Taleizadeh ◽  
Iman Shokr ◽  
Fariborz Joali
Keyword(s):  
Supply Chain ◽  
Storage Capacity ◽  
Inventory Systems ◽  
Periodic Review ◽  
Vendor Managed Inventory ◽  
Continuous Review ◽  
Decision Variables ◽  
Partial Backordering ◽  
Key Factor ◽  
Optimal Values

A supply chain member’s coordination is a challenging issue and a key factor of success in business markets. In vendor-managed inventory systems, the vendor makes replenishment decisions at the site of buyer by which the supply chain can be coordinated more efficiently. Two integrated vendor managed inventory systems under continuous review and periodic review replenishment policies are developed considering partial backordering and limited storage capacity at the buyer’s side. Furthermore, traditional retailer managed inventory systems under the same settings are developed to compare against the integrated systems. Efficient algorithms are presented to derive the optimal values of decision variables. Finally, numerical experiments and comprehensive sensitivity analysis are used to show the applicability and efficiency of the proposed VMI systems.

Information Technology Enabled Vendor Managed Inventory in Modelling Supply Chain Issues

2010 ◽  
pp. 226-252 ◽  
Author(s):  
Subramanian Nachiappan ◽  
Natarajan Jawahar
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Business Processes ◽  
Theoretical Background ◽  
Inventory Systems ◽  
Successful Implementation ◽  
Vendor Managed Inventory ◽  
Cooperative Agreements ◽  
Communication And Coordination ◽  
Operational Issues

Supply chain is a network of firms interacting in a linear fashion to produce, sell and deliver a product or service to a predetermined market segment. It links all the chain partners within and across organization to work competitively by forming the partnerships together with the integration of business processes, technical and organizational aspects. The successful implementation of supply chain management depends on many soft issues (strategic/behavioural). The soft issues of supply chain models can be dealt through proper information sharing, communication and coordination between the stages of supply chain. Vendor managed inventory is a proven concept for successful collaborative and cooperative agreements in supply chain. This chapter reviews some of the soft issues in two-echelon supply chain models and proposes a classification schema. This chapter surveys the theoretical background and application of vendor managed inventory systems based on environment, operational issues and solution approaches. Hence it is concluded that the framework presented in this chapter would aid supply chain managers and researchers to further look into the soft issues while modeling supply chain with information technology enabled vendor managed inventory systems.

Coordination and Decision of Supply Chain Under

2019 ◽  
Vol 12 (3) ◽  
pp. 21-46 ◽  
Author(s):  
Guangdong Liu ◽  
Tianjian Yang ◽  
Yao Wei ◽  
Xuemei Zhang
Keyword(s):  
Supply Chain ◽  
Numerical Analysis ◽  
Cost Sharing ◽  
Supply Chain Coordination ◽  
Pareto Improvement ◽  
Optimal Price ◽  
Decentralized System ◽  
Risk Neutral ◽  
Future Work ◽  
Dependent Demand

In order to investigate supply chain coordination and decision under customer balking and stochastic demand, the article considers a two-echelon supply chain consisting of one manufacturer with risk-neutral and one retailer with risk-neutral and develops two models in a centralized and a decentralized system and the three contracts are designed to coordinate supply chain and the optimal price and customer balking strategies are obtained. The results show that the revenue and cost-sharing contract can coordinate supply chain under customer balking and price-dependent demand and achieve the Pareto-improvement; the expected sales quantity and expected reduced sales quantity are influenced conversely by the threshold of inventory and probability of a sale under customer balking. In addition, numerical analysis is given to verify the effectiveness of revenue and cost-sharing contract and the paper gives some managerial insights and puts forward to the future work at last.

scholarly journals Coordinating Contracts for Two-Echelon Supply Chain with Price and Promotional Sensitive Demand

2016 ◽  
Vol 10 (7) ◽  
pp. 132
Author(s):  
Hooman Abdollahi ◽  
Mohammad Talooni
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Profit Sharing ◽  
Promotional Effort ◽  
Revenue Sharing Contract ◽  
Pricing Decision ◽  
The Cost

<p class="zhengwen"><span lang="EN-GB">In this paper three coordinating contracts in supply chain namely (i) revenue-sharing contract (ii) cost-sharing contract (iii) profit-sharing contract are proposed for two echelon supply chain coordination perspective under promotion and price sensitive demand. In our model buyer makes the promotional decision and undertakes the promotional sales effort cost. It is shown that in decentralized channel the results are sub-optimal. It is found analytically that the revenue-sharing contract coordinates pricing decision but not promotional decision for all values of the promotional effort cost. It is also found that the cost-sharing contract fails to coordinate channel. The profit-sharing contract is demonstrated to coordinate both the pricing and the promotional decisions in the channel.</span></p>

scholarly journals Differential Game Analyses of Logistics Service Supply Chain Coordination by Cost Sharing Contract

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Haifeng Zhao ◽  
Bin Lin ◽  
Wanqing Mao ◽  
Yang Ye
Keyword(s):  
Supply Chain ◽  
Differential Game ◽  
Cost Sharing ◽  
Supply Chain Coordination ◽  
Coordination Mechanism ◽  
Stackelberg Equilibrium ◽  
Logistics Service ◽  
Service Supply Chain ◽  
The Cost ◽  
Relationship Of

Cooperation of all the members in a supply chain plays an important role in logistics service. The service integrator can encourage cooperation from service suppliers by sharing their cost during the service, which we assume can increase the sales by accumulating the reputation of the supply chain. A differential game model is established with the logistics service supply chain that consists of one service integrator and one supplier. And we derive the optimal solutions of the Nash equilibrium without cost sharing contract and the Stackelberg equilibrium with the integrator as the leader who partially shares the cost of the efforts of the supplier. The results make the benefits of the cost sharing contract in increasing the profits of both players as well as the whole supply chain explicit, which means that the cost sharing contract is an effective coordination mechanism in the long-term relationship of the members in a logistics service supply chain.

scholarly journals Analysis of a Vendor Managed Consignment Inventory System with Kan-ban Withdrawals and Payment Delays

2018 ◽  
Vol 6 (1) ◽  
pp. 41-61
Author(s):  
Ravi Kumar Ramrakhyani ◽  
Mohammad Samie Tootooni ◽  
Nagen Nagarur
Keyword(s):  
Supply Chain ◽  
Manufacturing Systems ◽  
Manufacturing Industry ◽  
Inventory Systems ◽  
Vendor Managed Inventory ◽  
Time Value Of Money ◽  
Time Value ◽  
Supply Chain Management System ◽  
Push And Pull ◽  
Value Of Money

Vendor Managed Inventory (VMI) System with Consignment Inventory (CI) policy is a solution for many supply chain leaders in a highly competitive market. In this paper, totally eight different inventory supply chain models are studied. The profit function of supplier and manufacturer in different environments are compared in order to show the profitability of the overall supply chain management system in a manufacturing industry with different time horizons. The inventory systems are applied on a supply chain consisting of a single supplier and a manufacturer. The main focus of this study is to analyze the effect of payment deferral and the time value of money in push and pull (Kanban) manufacturing systems when VMI-CI policy is applied.

scholarly journals The Low-Carbon Supply Chain Coordination Problem with Consumers’ Low-Carbon Preference

2020 ◽  
Vol 12 (9) ◽  
pp. 3591 ◽  
Author(s):  
Dan Wu ◽  
Yuxiang Yang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Cost Sharing ◽  
Supply Chain Coordination ◽  
Low Carbon ◽  
Order Quantity ◽  
Coordination Problem ◽  
Emission Abatement ◽  
The Cost ◽  
The Impact

In this paper, we study the supply chain coordination problem between a manufacturer and a retailer regarding consumers’ low-carbon preferences. The retailer considers the market demand to determine the order quantity; the manufacturer chooses how to reduce emissions according to the retailer’s order quantity. We consider four cases, including the non-emission abatement, the emission abatement of decentralized decision-making, the centralized decision-making and the retailer providing a cost-sharing contract. By comparing the four cases, we find that the case of a retailer providing a cost-sharing contract can coordinate the supply chain, achieving a Pareto improvement for the manufacturer and retailer. In addition, we use the Rubinstein bargaining model to determine the cost-sharing ratio. Finally, numerical simulations are given to analyze the impact of the cost-sharing ratio on the equilibrium results, including the profit and the emission abatement level. Furthermore, we investigate the impact of the cost-sharing ratio and consumers’ low-carbon awareness on the profits of the members in the supply chain. We find that the equilibrium results, including the order quantity, the emission abatement level and the profits of the members in the supply chain under contract, are higher than the ones under centralized decision-making. The results show that in the higher low-carbon awareness market, retailers should formulate a reasonable cost-sharing ratio to achieve emission reduction coordination.

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