Research on Quantity-Discount Contract Based Two-Stage Supply Chain Coordination in the Environment of Discrete Multi-cycle Demand

Author(s):  
Ting He ◽  
Yangyang Zhao ◽  
Tianyang Li ◽  
Dianhui Chu
2019 ◽  
Vol 8 (3) ◽  
pp. 31-48
Author(s):  
Sandhya Makkar

In the changing market scenario, supply chain management is getting phenomenal importance amongst researchers. Studies on supply chain management have emphasized the vitality of a long-term strategic relationship between the supplier, distributor and retailer. In this article, the authors have studied a two-stage supply chain coordination problem under uncertain costs and demand information when integrated procurement and distribution decisions of supply chain has to be employed. The model incorporates a single supplier transporting its products to multiple destinations of a retailer. This process becomes tedious, as when items have an inventory carrying cost incurred due to perishable nature of products. Different discount policies are offered to procure and transport goods from the one stage to other stage. Fuzzy set theory is applied to estimate the uncertainty associated with the input parameters and triangular fuzzy numbers are used to analyze the model. A case is presented to validate the procedure.


2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Zhihong Wang ◽  
Shaofeng Liu

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.


2016 ◽  
Vol 2016 ◽  
pp. 1-14 ◽  
Author(s):  
Biswajit Sarkar

This paper illustrates a channel coordination and quantity discounts between a vendor and a buyer with single-setup multi-delivery (SSMD) strategy to reduce the joint total cost among supply chain players. The benefit of the coordination between a buyer and a vendor is considered as the vendor requests to the buyer for changing the ordering quantity such that the vendor can be benefited from lower inventory costs. After accepting the buyer’s condition, the vendor compensates the buyer for his increased inventory cost and gives consent for additional savings by offering a quantity discount. The centralized decision making is examined for the effect of this strategy with the presence of backorder for buyer and inspection cost for the vendor. The quantity discount strategy, with the presence of variable backorder and inspections, can allow more savings for all players of supply chain. Some numerical examples, sensitivity analysis, and graphical representations are given to illustrate more savings from existing literature and comparisons between the several demand values.


2021 ◽  
Vol 40 (1) ◽  
pp. 27-41
Author(s):  
Jingjing Wang ◽  
Minli Xu ◽  
Huiyun Jian

This paper considers a two-stage supply chain consisting of one manufacturer and one retailer, exploring the impact of the fuzzy uncertainty of product yield and demand and the deciders’ risk attitudes on the optimal order quantity of the retailer. At the same time, this study tries to analyze the coordination problem in the two-stage supply chain with consideration of the retailer and the manufacturer’s risk attitudes. Firstly, this study develops a supply chain optimal decision model in a centralized decision framework. In the proposed model, the L-R fuzzy numbers are used to depict the yield and demand with fuzzy characteristics. Then, the coordination of quantity discount in a supply chain is studied. Consequently, this research further investigates a special case in which the market demand and yield are assumed to be triangular fuzzy numbers, and the optimal solution of the order quantity and the wholesale price are obtained. At last, this paper utilizes several numerical examples to validate the proposed model. The results show that the quantity discount contract can coordinate the supply chain in a fuzzy environment, and the optimal order quantity decreases with the increasing of the risk bias coefficient of the retailer and the manufacturer. It also suggests that risk-seeking retailer will order more products, in addition, the manufacturer tend to choose a risk-seeking retailer as partner and the retailer is more likely to choose a risk-seeking rather than risk-aversion manufacturer as partner.


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