scholarly journals Optimal Guaranteed Service Time and Service Level Decision with Time and Service Level Sensitive Demand

2014 ◽  
Vol 2014 ◽  
pp. 1-7 ◽  
Author(s):  
Sangjun Park ◽  
Ki-sung Hong
Keyword(s):  
Supply Chain ◽  
Service Time ◽  
Service Level ◽  
Retail Price ◽  
Optimal Price ◽  
Optimal Capacity ◽  
Make To Order ◽  
Optimal Service ◽  
Proposed Model ◽  
Guaranteed Service

We consider a two-stage supply chain with one supplier and one retailer. The retailer sells a product to customer and the supplier provides a product in a make-to-order mode. In this case, the supplier’s decisions on service time and service level and the retailer’s decision on retail price have effects on customer demand. We develop optimization models to determine the optimal retail price, the optimal guaranteed service time, the optimal service level, and the optimal capacity to maximize the expected profit of the whole supply chain. The results of numerical experiments show that it is more profitable to determine the optimal price, the optimal guaranteed service time, and the optimal service level simultaneously and the proposed model is more profitable in service level sensitive market.

scholarly journals Service and Price Decisions of a Supply Chain with Optional After-Sale Service

2016 ◽  
Vol 2016 ◽  
pp. 1-11
Author(s):  
Xiaochen Sun ◽  
Qingshuai Zhang ◽  
Yancong Zhou
Keyword(s):  
Quality Assurance ◽  
Supply Chain ◽  
Wholesale Price ◽  
Service Level ◽  
Retail Price ◽  
High Quality ◽  
Optional Service ◽  
Durable Products ◽  
Purchase Behaviors

For durable products, the high quality after-sales service has been playing an increasingly important role in consumers’ purchase behaviors. We mainly study a supply chain composed of a manufacturer and a retailer. In a process of products sales, the manufacturer will provide a basic free quality assurance service. On this basis, the retailer provides paid optional quality assurance service to consumers to promote sales. Users are divided into two categories in this paper: users with no optional service and users with optional services. We derive the equilibrium decisions between the manufacturer and the retailer under the following two cases: (i) the optional after-sales service level and the wholesale price determined by the manufacturer and the retail price determined by the retailer; (ii) the wholesale price determined by the manufacturer and the optional after-sales service level and the retail price determined by the retailer.

scholarly journals Optimization and Decision of Supply Chain Considering Negative Spillover Effect and Service Competition

2021 ◽  
Vol 13 (4) ◽  
pp. 2320
Author(s):  
Yucai Wu ◽  
Jiguang Wang ◽  
Lu Chen
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Stackelberg Game ◽  
Market Competition ◽  
Spillover Effect ◽  
Service Level ◽  
Layer Compound ◽  
Competitive Network ◽  
Optimal Service ◽  
Negative Spillover

Excellent service plays a vital role in the sustainability of enterprise and supply chains development in today’s increasingly fierce market competition. However, due to the inevitable spillover effect in the competitive network, enterprises’ initiative to improve the service level is reduced. From the perspective of negative spillover effect, optimization and decision-making in the competitive network of retailer-dominated supply chain are examined in this study. Considering four competitive situations in practical operation management, the corresponding double-layer compound nested Stackelberg game models are constructed, and the optimal equilibrium solutions are derived. Employing comprehensive comparison and analysis of the results, it is found that when the negative spillover effect of service increases, the optimal profit and service level of the leading supply chain or its retailers decrease, and the optimal retail price and overall optimal profit also gradually decline. For the leading supply chain, the centralized decision-making can achieve higher profits, and also more willing to improve the level of service. However, for the following supply chain, when the negative spillover effect of service is weak, the optimal service level under decentralized decision is higher, while when the spillover effect of service is strong, the optimal service level under integrated decision is higher. In addition, the supply chain-to-chain competition can bring negative incentives to the retailer that provides services, while for the rival that does not provide services, it can generate a certain free-riding effect that benefits them, and the effect is enhanced with the increase of competition.

scholarly journals Flexible ABC Inventory Classification

2018 ◽  
Vol 4 (2) ◽  
pp. 228
Author(s):  
Rathanaksambath Ly ◽  
Morrakot Raweewan
Keyword(s):  
Inventory Management ◽  
Real Life ◽  
Service Level ◽  
Optimal Service ◽  
Proposed Model

ABC inventory classification is a well-known approach to assign inventory item into A, B, and C groups based on their sales and usage volume. This helps inventory management become more efficient. Behind its advantage, it usually shows some problems with an inventory budget and warehouse space because the ABC assignment of SKUs are mad e without an inventory budget and space available involved. In this paper, the ABC group under restricted of an inventory budget and warehouse space to maximize the profit with optimal service level is presented. We establish this proposed model to enhance the existing ABC approach to be more applicable in real life, which has the limited inventory budget and warehouse space. Keywords: ABC Inventory Classification; Inventory Management

Coordination of a Supply Chain with Demand Stimulation and Random Demand Disruption

2011 ◽  
pp. 1-14 ◽  
Author(s):  
Tiaojun Xiao ◽  
Jia Luo ◽  
Jiao Jin
Keyword(s):  
Supply Chain ◽  
Dynamic Game ◽  
Service Level ◽  
Retail Price ◽  
Coordination Mechanism ◽  
Game Model ◽  
Market Demand ◽  
Decentralized Supply Chain ◽  
Penalty Costs ◽  
Dynamic Game Model

This chapter develops a dynamic game model of a supply chain consisting of one manufacturer and one retailer to study the coordination mechanism and the effect of demand disruption on the coordination mechanism, where the market demand is sensitive to retail price and service. We assume that the supplier and the retailer only know the distribution of the disrupted amount after the demand disruption and they share the quantity deviation costs. We find that an all-unit wholesale quantity discount-subsidy mechanism can coordinate the supply chain. We give the coordination mechanism of the supply chain after the demand disruption and find that the demand disruption remarkably influences the price-service level decisions of the centralized supply chain and the coordination mechanism of the decentralized supply chain. In particular, the expected quantity differs from the planned quantity although the penalty costs prevent from this deviation.

scholarly journals Leagile supply chain network design through a dynamic two-phase optimization in view of Order Penetration Point

2020 ◽  
Author(s):  
Masoud Rabbani ◽  
Soroush Aghamohamadi Bosjin ◽  
Neda Manavizadeh
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Agile Manufacturing ◽  
Service Level ◽  
Second Phase ◽  
Supply Chain Network ◽  
Industrial Case Study ◽  
Total Cost ◽  
Proposed Model ◽  
Customer Service Level

In the contemporary world, combining the concept of agile and lean manufacturing (LM) is one of the most strategic and appealing concerns in the industrial environments. In this paper, a new Leagile structure is proposed for a supply chain. This research covers long term and mid-term horizon by designing a supply chain network up to the order penetration point (OPP) and final assembly and sale planning respectively. The problem is programmed in two phases. First, a bi-objective optimization is developed to minimize the total cost related with LM. In the second phase, the total cost and the customer service level (CSL) are considered as the agile manufacturing (AM) architecture. In the proposed model, a utility function is applied to set balance between the price and customer satisfaction. In addition, a robust credibility-based fuzzy programming (RCFP) is developed to handle uncertainty of the first phase. The proposed model and the solution method are implemented for a real industrial case study to show the applicability and usefulness of this study. According to the results, improving the customer service level can enhance the total cost of the second phase meaning that customer responsiveness price is too high for the proposed system.

The effect of full or partial pricing integration on supply chain management

2019 ◽  
Vol 53 (5) ◽  
pp. 1807-1817
Author(s):  
Neng-Hui Shih ◽  
Ming-Hung Shu ◽  
Chih-Hsiung Wang
Keyword(s):  
Supply Chain ◽  
Cost Model ◽  
Service Level ◽  
Chain Model ◽  
Control Cost ◽  
Integration Model ◽  
Optimal Service ◽  
Supply Chain Model ◽  
Optimal Pricing Strategy ◽  
Total Profit

A previous paper proposed a supply chain model, comprised of a retailer and manufacturer, in which the manufacturer uses product pricing to maximize the profit of the entire supply chain. The increased profits gained from integration are then shared among all the supply chain members. The optimal pricing strategy was shown to be “products on consignment” for sale. The present study extends this simple two-layer supply chain model to a more complicated three-layer model, in which the supply chain comprises not only the retailer and manufacturer, but also an intermediate distributor. In contrast to the previous model, the present model not only considers the role of the distributor, but also the effects of product nonconformance at each facility in the supply chain. The profit function of each facility in the supply chain is established, including the sales revenue, procurement cost, and quality control cost. The investment cost at the retailer to improve the service level is also considered. It is shown that the total profit of the supply chain is maximized when the retailer’s optimal service level is adopted, where this service level is adjusted in accordance with the distributor’s unit sale price. Furthermore, after price integration, the overall profit of the supply chain is found to equal the retailer’s profit. In other words, the total profit of the manufacturer and distributor is equal to zero. Numerical examples are given to illustrate the proposed pricing integration model under different quality environments. The results are contrasted with those obtained using a traditional pricing model, namely the “make up on cost’’ model. Overall, the present results show that the manufacturer is always the winner under partial price integration (i.e., only the retailer and distributor join the integration). Furthermore, partial integration is far less profitable for the retailer and distributor than full integration.

scholarly journals STRATEGIC APPROACH TO SUPPLY CHAIN MANAGEMENT IN LOGISTICS

10.26458/1626 ◽  
2016 ◽  
Vol 16 (2) ◽  
pp. 81
Author(s):  
Sebastian CHIRIMBU ◽  
Alexandru BURDA
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Customer Satisfaction ◽  
Service Level ◽  
Level Of Service ◽  
Chain Management ◽  
Time Value ◽  
Strategic Approach ◽  
Optimal Service ◽  
Customer Services

According to its mission, the fundamental purpose of logistics is to contribute to the achievement of customer services in terms of efficiency. Company's performance in the supply chain is given by the delivery service. It must be established from the way the company responds to every order received from the customer as a result of implementing a strategy consisting of a series of specific decisions. A higher level of service requires those decisions to permit the firm to meet an optimal service level and a complete customer satisfaction in terms of price, time value of the invoice, goods arrived safely at their destination. The level at which an order is satisfied is a measure of the performance of the supply chain of the company and of the strategy applied by the company for its management.

Global supply chain network design problem with rules of origin and limited import quotas

Kybernetes ◽  
2019 ◽  
Vol 48 (5) ◽  
pp. 930-948 ◽  
Author(s):  
Xinxuan Cheng ◽  
Guoqing Yang ◽  
Longfei Fan
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Service Level ◽  
Global Supply Chain ◽  
Network Design Problem ◽  
Supply Chain Network Design ◽  
Supply Chain Network ◽  
Content Type ◽  
Proposed Model ◽  
Import Quotas

Purpose This paper aims to develop an uncertain global supply chain network design (GSCND) model with rules of origin (RoOs) and limited import quotas, and to discuss the international factors’ effects on location decisions. Design/methodology/approach The authors establish an uncertain GSCND model with the international factors. The transportation costs and customers’ demands are characterized as random variables. To deal with the risk of uncertainty, the authors introduce the customers’ demand service level. A sample approximation approach (SAA) is used to deal with the service level constraint and turn the proposed model into a mixed integer programming. On the basis of the properties of the proposed model, a hybrid memetic algorithm (MA) is designed to solve it. Findings The authors find that the proposed MA is efficient to the real supply chain network design problem. Besides, the RoOs and limited import quotas can affect the optimal choices of plant and distribution center locations. Originality/value The authors propose an uncertain GSCND model with RoOs and limited import quotas. An MA with SAA is designed to solve the proposed model. The authors apply the proposed model into a real global supply chain of an apparel corporation in East Asia, and give some managerial insights.

A fuzzy maturity-based method for lean supply chain management assessment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gabriela Pereira Soares ◽  
Guilherme Tortorella ◽  
Marina Bouzon ◽  
Madjid Tavana
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Chain Management ◽  
Content Type ◽  
Make To Order ◽  
Lean Practices ◽  
Fuzzy Delphi ◽  
Production Policy ◽  
Proposed Model ◽  
Lean Supply Chain

Purpose This study aims to propose a method for measuring lean supply chain management (LSCM) maturity based on the main lean practices and existing waste of a supply chain. Design/methodology/approach A three-stage approach was developed. First, a thorough literature review was performed to raise concepts and previous findings on maturity models (MMs) and LSCM. This review’s outcomes were then validated by experts in the field using the fuzzy Delphi method (FDM). Subsequently, the proposed model was illustrated and assessed based on a multi-case study. Findings All companies attained high outcomes in the elimination of the waste pillar. The pillars of logistics management, continuous improvement and information technology management also stood out in the three organizations’ results. The company with the lowest maturity level operates in a make-to-order production policy, which may harm the lean supply in its supply chain. Practical implications The proposed model can reveal external opportunities and threats and internal strengths and weaknesses in supply chains (SCs). It is also capable of providing a clear roadmap for SC improvement in companies. Originality/value To the best of the authors’ knowledge, no study to date has proposed a MM in the LSCM context using FDM and considering the crucial relationship between lean practices and wastes.

Sign in / Sign up

Export Citation Format

Share Document