scholarly journals Chemical supply chain coordination based on technology level and lead-time considerations

2021 ◽  
Author(s):  
Atieh Fander ◽  
Saeed Yaghoubi ◽  
Javad Asl-Najafi
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Supply Chain Coordination ◽  
Sensitivity Analyses ◽  
Market Demand ◽  
Deterioration Rate ◽  
Managerial Implications ◽  
Total Profit ◽  
Finite Time Horizon ◽  
Technology Level

The production and transportation of chemicals is a risky process with high-cost operations for members of the supply chain, where some of the materials deteriorate over time and deal with value-reduction challenges. This paper studies a two-stage hazardous chemicals supply chain with a supplier and a manufacturer in a finite time horizon with a constant deterioration rate for both sides. To prevent potential hazards and improve product quality, the manufacturer invests in risk reduction and quality improvement technologies that can also attract more market demand. Owing to the importance of time in the storage and production of chemical products, this study focuses on a novel lead-time based discount contract to coordinate the channel members. The contract seeks to maximize the total profit of the chain by determining the optimal lead-time and manufacturer's technology level. By doing so, the supplier provides high-quality products and the manufacturer's unit supplying cost reduces and can buy more chemicals from the supplier. On the other hand, the supplier will have more time to supply the product and its initial cost will be reduced. As a result, the profit of both sides increases simultaneously. Some numerical examples are applied to examine the applicability of the proposed models. Finally, several sensitivity analyses on the main parameters are conducted to extract some in-depth managerial implications.

scholarly journals Coordinating a fresh-product supply chain with demand information updating: Hema Fresh O2O platform

2021 ◽  
Author(s):  
Jiawu Peng ◽  
Honglin Yang
Keyword(s):  
Supply Chain ◽  
Risk Sharing ◽  
Lead Time ◽  
Supply Chain Coordination ◽  
Market Demand ◽  
Profit Allocation ◽  
Information Updating ◽  
Demand Information ◽  
Production Quantity ◽  
Theoretical Results

Motivated by Hema Fresh's new-retail case, we study the coordination of a two-echelon fresh-product supply chain consisting of a single supplier and a single retailer. Due to a long production lead time, the supplier has to make production decision in advance based on early demand information. The market demand can be updated during the supplier's production lead time. Hence, the retailer would make order decision according to the latest demand information. Incorporating risk-sharing mechanism of overproduction and overstock, we propose a novel bi-directional risk-sharing contract to coordinate such a supply chain with demand information updating. We construct a two-stage optimization model in which the supplier first decides production quantity, and then the retailer decides final order quantity not exceeding the supplier’s initial production. In both the centralized and decentralized systems, we analytically derive the unique equilibrium of production and order decisions in a Stackelberg supplier-led game. We prove that the proposed contract can realize supply chain perfect coordination and explore how the proposed contract affects the members'decisions. The theoretical results show that, by turning the risk-sharing proportions, the supply chain profit can be arbitrarily split between the members, which is a desired property for supply chain coordination. Compared with the single risk-sharing contract, the proposed contract results in a greater supply chain profit and achieves Pareto improvement for both members. Furthermore, we also explore how the risk preference and negotiating power affect the contract selection and the additional profit allocation of the supply chain. Numerical examples are presented to verify our theoretical results.

scholarly journals The More Supply Chain Control Power, the Better? A Comparison among Four Kinds of Cooperation Models

2015 ◽  
Vol 2015 ◽  
pp. 1-19 ◽  
Author(s):  
Weihua Liu ◽  
Shuqing Wang ◽  
Donglei Zhu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
The Other ◽  
Order Quantity ◽  
Control Power ◽  
Decentralized Decision Making ◽  
Optimal Value ◽  
Total Profit

This paper introduces the parameter of supply chain control power into existing supply chain coordination models and explores the impacts of control power on the profits of manufacturer, retailer, and the overall supply chain under four modes of decision-making, including the decentralized decision-making dominated by manufacturer, the decentralized decision-making dominated by retailer, centralized decision-making, and Nash negotiation decision-making. Some significant conclusions are obtained. Firstly, supply chain control power does have great impact on the supply chain profits. The profit of the whole supply chain with centralized decision-making is higher than those of the other three modes, while the overall profit of supply chain with decentralized decision-making is superior to the profit when retailer and manufacturer dominate the supply chain together. Secondly, with decentralized decision-making, for manufacturer and retailer, it is beneficial to gain the control powers of the supply chain; however, control power has an optimal value, not the bigger, the better. Thirdly, under certain circumstances, order quantity will increase and the wholesale price will decrease when control power is transferred from manufacturer to retailer. In this case, the total profit of supply chain dominated by retailer will be greater than that dominated by manufacturer.

scholarly journals Supply Chain Coordination under Trade Credit and Quantity Discount with Sales Effort Effects

2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Zhihong Wang ◽  
Shaofeng Liu
Keyword(s):  
Supply Chain ◽  
Analytical Model ◽  
Hybrid Model ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Market Demand ◽  
Quantity Discount ◽  
Model Combining ◽  
Effort Effect

The purpose of this paper is to investigate the role of trade credit and quantity discount in supply chain coordination when the sales effort effect on market demand is considered. In this paper, we consider a two-echelon supply chain consisting of a single retailer ordering a single product from a single manufacturer. Market demand is stochastic and is influenced by retailer sales effort. We formulate an analytical model based on a single trade credit and find that the single trade credit cannot achieve the perfect coordination of the supply chain. Then, we develop a hybrid quantitative analytical model for supply chain coordination by coherently integrating incentives of trade credit and quantity discount with sales effort effects. The results demonstrate that, providing that the discount rate satisfies certain conditions, the proposed hybrid model combining trade credit and quantity discount will be able to effectively coordinate the supply chain by motivating retailers to exert their sales effort and increase product order quantity. Furthermore, the hybrid quantitative analytical model can provide great flexibility in coordinating the supply chain to achieve an optimal situation through the adjustment of relevant parameters to resolve conflict of interests from different supply chain members. Numerical examples are provided to demonstrate the effectiveness of the hybrid model.

scholarly journals Three-level supply chain coordination of fresh agricultural products in the Internet of Things

2017 ◽  
Vol 117 (9) ◽  
pp. 1842-1865 ◽  
Author(s):  
Bo Yan ◽  
Xiao-hua Wu ◽  
Bing Ye ◽  
Yong-wang Zhang
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Agricultural Product ◽  
The Internet ◽  
Market Demand ◽  
Content Type ◽  
Revenue Sharing Contract ◽  
The Internet Of Things

Purpose The Internet of Things (IoT) is used in the fresh agricultural product (FAP) supply chain, which can be coordinated through a revenue-sharing contract. The purpose of this paper is to make the three-level supply chain coordinate in IoT by considering the influence of FAP on market demand and costs of controlling freshness on the road. Design/methodology/approach A three-level FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT is regarded as the research object. This study improves the revenue-sharing contract, determines the optimal solution when the supply chain achieves maximum profit in three types of decision-making situations, and develops the profit distribution model based on the improved revenue-sharing contract to coordinate the supply chain. Findings The improved revenue-sharing contract can coordinate the FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT, as well as benefit all enterprises in the supply chain. Practical implications Resource utilization rate can be improved after coordinating the entire supply chain. Moreover, loss in the circulation process is reduced, and the circulation efficiency of FAPs is improved because of the application of IoT. The validity of the model is verified through a case analysis. Originality/value This study is different from other research in terms of the combination of supply chain coordination, FAPs, and radio frequency identification application in IoT.

scholarly journals Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Qinghua Pang ◽  
Yuer Chen ◽  
Yulu Hu
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Optimal Contract ◽  
Market Demand ◽  
Revenue Sharing Contract ◽  
Normal Environment ◽  
Contract Form ◽  
Additive Form ◽  
Dependent Demand

Considering the market demand is stochastic and dependent on price, this paper shows that the revenue-sharing contract could coordinate a three-level supply chain consisting of one manufacturer, one distributor, and one retailer under normal environment. However, the original revenue-sharing contract cannot coordinate the supply chain under disruptions in circumstances of certain incidents leading to significant changes in market demand and causing additional deviation costs. To solve the problem, this essay introduces two improved forms of revenue-sharing contract: a mixed contract form based on a quantity discount policy and a pure form, which are characterized by antidisruption ability. The model of improved revenue-sharing contract is optimized when the market demand is in the additive form or in the multiplicative form with price dependent demand. Formulas are given to calculate the optimal contract parameters. Finally, this essay demonstrates the accuracy of the model of improved revenue-sharing contract with the help of numerical examples.

scholarly journals Model Three-Level Dual-Channel Supply Chain pada Sistem Sentralisasi dengan Memertimbangkan Waktu Tunggu Pengiriman

d'CARTESIAN ◽  
2020 ◽  
Vol 9 (1) ◽  
pp. 72
Author(s):  
Shinta Nur Pratiwi Ramadhani ◽  
Ririn Setiyowati ◽  
Titin Sri Martini
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Nonlinear Function ◽  
Optimal Solution ◽  
Global Market ◽  
Centralize System ◽  
Dual Channel ◽  
Total Profit ◽  
Online Channel ◽  
Dual Channel Supply Chain

AbstrakEra pasar global telah mengubah kebiasaan konsumen dalam membeli produk, sehingga konsumen dapat membeli produk melalui media online. Oleh karena itu, produsen mengembangkan media penjualannya melalui media online dan offline. Pada penelitian ini dikembangkan model three-level dual-channel supply chain dengan memertimbangkan waktu tunggu pengiriman pada penjualan melalui media online yang dilakukan oleh produsen serta mengembangkan media penjualan distributor sehingga distributor dapat menjual produk secara langsung ke konsumen. Konstruksi model bertujuan untuk mengoptimalkan keuntungan gabungan produsen, distributor, dan pengecer dengan sistem sentralisasi. Fungsi keuntungan gabungan merupakan fungsi nonlinear tanpa kendala dengan tiga variabel keputusan yaitu harga jual produsen pada media online, harga jual distributor langsung ke konsumen, dan harga jual pengecer ke konsumen. Selanjutnya, ditentukan solusi optimal model berdasarkan syarat perlu dan syarat cukup untuk fungsi multivariabel tanpa kendala. Berdasarkan simulasi numerik dan analisis sensitivitas dapat dilihat pengaruh faktor waktu tunggu pengiriman terhadap fungsi keuntungan gabungan yang optimal. Ditunjukkan bahwa lamanya waktu tunggu pengiriman sangat berpengaruh pada besarnya keuntungan optimal gabungan produsen, distributor, dan pengecer.Kata Kunci: Sentralisasi, Three-Level, Waktu TungguAbstractThe global market era changes the consumer behavior to shop the product, so the consumer can buy through online channel. Therefore, the producer develop the selling channel to sell their products through online channel and offline channel. In this research, we develop the three-level dual-channel supply chain by notice delivery lead time in the online channel used by the producer and develop selling channel from distributors so distributors can sell their product to consumer with direct selling. We construct the model with profit maximization motive of the system that consists producer, distributors, and retailer in the centralize system. The total profit function is nonlinear function without constrains with three decision variables. Furthermore, we determine the optimal solution of the model based on necessary and sufficient condition. Based on numerical simulations and sensitivity analysis we analyze the effect of delivery lead time strongly influences the optimal total profit system.Keywords: Centralize, Lead Time, Three-Level

scholarly journals Supply chain coordination strategy for NEVs based on supplier alliance under dual-credit policy

PLoS ONE ◽  
2021 ◽  
Vol 16 (10) ◽  
pp. e0257505
Author(s):  
Miaomiao Ma ◽  
Weidong Meng ◽  
Yuyu Li ◽  
Bo Huang
Keyword(s):  
Supply Chain ◽  
Dual Credit ◽  
Supply Chain Coordination ◽  
Investment Strategy ◽  
Bargaining Game ◽  
Market Demand ◽  
Credit Policy ◽  
Coordination Strategy ◽  
Technology Improvement ◽  
D Investment

In this paper, we assume that the supply chain for new energy vehicles (NEVs) consists of a manufacturer and N parts suppliers, considering that the R&D investment of both manufacturer and suppliers will affect the market demand of NEVs and NEVs credit, we construct decentralized and centralized decision-making models under the dual-credit policy to study the R&D investment strategy of supply chain enterprises. Furthermore, considering that suppliers can form alliances, we establish bargaining game models under the conditions of the non-alliance and alliance of suppliers, and discuss the coordination strategy for the NEVs supply chain. It is found that, under the dual-credit policy, the higher the credit coefficient of technology improvement, the higher the transaction price of credits, and the higher the R&D investment of supply chain. Dual-credit policy can effectively encourage NEVs supply chain to increase R&D investment, improve NEV technology level, and improve the profit of supply chain. Under the dual-credit policy, the increment profit distribution strategy based on a bargaining game model can coordinate the NEVs supply chain. When suppliers separately negotiate with the manufacturer, bringing the negotiation sequence forward, the supplier can get more profits. However, as the manufacturer has the right to determine the negotiation sequence, the supplier can only get the profit of the last round of negotiation, and the manufacturer can get excess profit. Forming a suppliers alliance can solve this problem effectively, and increase the profit of all suppliers when the alliance`s negotiating power is improved to a certain threshold.

scholarly journals Inter-basin water transfer green supply chain coordination with partial backlogging under random precipitation

2020 ◽  
Author(s):  
Zhisong Chen ◽  
Huimin Wang
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Water Transfer ◽  
Policy Implications ◽  
Decision Models ◽  
Operational Performance ◽  
Sensitivity Analyses ◽  
Green Supply Chain ◽  
Partial Backlogging ◽  
Basin Water

Abstract Water demand backlogging and delivery loss have important impacts on the operational decisions and efficiency of the inter-basin water transfer (IBWT) green supply chain. This paper formulates, analyzes, and compares three IBWT green supply chain coordination decision models considering water delivery loss with lost sales, fully backlogging and partial backlogging under random precipitation, conducts the corresponding numerical and sensitivity analyses, and summarizes the corresponding managerial insights and policy implications. The research results show that: first, a two-part tariff contract can effectively coordinate the IBWT green supply chain and improve operational performance; second, the fully/partial backlogging strategy can effectively improve the operational performance of the IBWT green supply chain; third, fully backlogging is the first-best strategy and partial backlogging is the second-best strategy for the IBWT green supply chain.

scholarly journals Optimal Pricing Decision of Fashion Apparel considering Experiential Service and Design Enhancement

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-11 ◽  
Author(s):  
Qi Xu ◽  
Lili Zhou ◽  
Qi Chen
Keyword(s):  
Substitution Effects ◽  
Optimal Pricing ◽  
Selling Price ◽  
Market Demand ◽  
Complementarity Effect ◽  
Deterioration Rate ◽  
Pricing Decision ◽  
Proposed Model ◽  
Total Profit ◽  
Fashion Apparel

Fashionable clothing is susceptible to seasonality, fashion popularity, and other factors. The decline in the fashion level for fashion apparel will cause its market value to continuously decrease, reducing market demand and creating a backlog of apparel inventory. Under such a circumstance, the apparel retailer chooses to maintain the fashion of the goods by providing experiential services or enhancing product design capabilities. This paper focuses on the discussions on the issue of whether experience service and design efforts are complements or substitutes. The major objective is to simultaneously determine the experience service investment and the optimal selling price to maximize the total profit. First, a Cobb–Douglas utility function is used to derive a demand function that depends on the price and fashion level. Four kinds of inventory models are further established to obtain optimal pricing and inventory ordering strategies. Second, an algorithm is presented to search for the optimal solutions of the proposed model. Finally, a numerical example is provided to perform a sensitivity analysis of the key parameters and to discuss specific managerial insights. The numerical examples show that both the experiential services and the enhanced fashion design can effectively reduce the apparel company’s inventory and increase profits. When the two strategies are combined, they will produce complementary or substitution effects, which depend on the deterioration rate of the fashion level of the apparel. If the deterioration rate is less than a critical value, the interaction of experiential services and design investment has a complementarity effect.

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