An integrated inventory model for a single vendor and multiple buyers with ordering cost reduction

Woo, York Y.; Hsu, Shu-Lu; Wu, Shuo‐Jye

doi:10.1016/s0925-5273(00)00178-x

Cited by 129 publications

(71 citation statements)

References 14 publications

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“…The problem of determining the T and Z for the vendor can then be formulated as follows (2001) is provided in Piplani & Viswanathan (2004). Woo et al (2001) extended upon the work of Woo et al (2000) to account for the case of multiple buyers. They assumed that vendor and all buyers are willing to invest in reducing the ordering cost (e.g., establishing an electronic data interchange based inventory control system) in order to decrease their joint total cost.…”

Section: Multiple Buyersmentioning

confidence: 99%

“…They assumed that vendor and all buyers are willing to invest in reducing the ordering cost (e.g., establishing an electronic data interchange based inventory control system) in order to decrease their joint total cost. Woo et al (2001) stressed that a major managerial implication from this ordering cost reduction is that the efforts to streamline and speedup transactions via the application of information technologies may result in a higher degree of coordination and automation among allied trading parties. Woo et al (2001) also assume that shortages are not allowed for the vendor and that the information of buyers' replenishment decision parameters is available to the vendor.…”

Section: Multiple Buyersmentioning

confidence: 99%

“…Woo et al (2001) stressed that a major managerial implication from this ordering cost reduction is that the efforts to streamline and speedup transactions via the application of information technologies may result in a higher degree of coordination and automation among allied trading parties. Woo et al (2001) also assume that shortages are not allowed for the vendor and that the information of buyers' replenishment decision parameters is available to the vendor. The joint total cost for the vendor and all the buyers per unit time is…”

Section: Multiple Buyersmentioning

confidence: 99%

“…, T is the common cycle time for buyers, which is a decision variable, u is usage rate of raw materials for producing each finished item, Recently, Yu et al (2006) improved upon the work of Woo et al (2001) by providing a lower or equal joint total cost as compared to the relaxation of their integral multiple material ordering cycle policy to a fractional-integral multiple material ordering cycle policy. More recently, Zhang et al (2007) extended the work of Woo et al (2001) by relaxing the assumption of a common cycle time for all buyers and the vendor.…”

Section: Multiple Buyersmentioning

confidence: 99%

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Quantitative Models for Centralised Supply Chain Coordination

Jaber¹,

Zolfaghari²

2008

Supply Chain

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IntroductionA supply chain is defined as a network of facilities and distribution options that perform the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Managing such functions along the whole chain; that is, from the supplier's supplier to the customer's customer; requires a great deal of coordination among the players in the chain. The effectiveness of coordination in supply chains could be measured in two ways: reduction in total supply chain costs and enhanced coordination services provided to the end customer ⎯ and to all players in the supply chain. Inventory is the highest cost in a supply chain accounting for almost 50% of the total logistics costs. Integrating order quantities models among players in a supply chain is a method of achieving coordination. For coordination to be successful, incentive schemes must be adopted. The literature on supply chain coordination have proposed several incentive schemes for coordination; such as quantity discounts, permissible delay in payments, price discounts, volume discount, common replenishment periods. The available quantitative models in supply chain coordination consider up to four levels (i.e., tier-1 supplier, tier-2 supplier, manufacturer, and buyer), with the majority of studies investigating a two-level supply chain with varying assumptions (e.g., multiple buyers, stochastic demand, imperfect quality, etc). Coordination decisions in supply chains are either centralized or decentralized decision-making processes. A centralized decision making process assumes a unique decision-maker (a team) managing the whole supply chain with an objective to minimize (maximize) the total supply chain cost (profit), whereas a decentralized decision-making process involves multiple decision-makers who have conflicting objectives. This chapter will review the literature for quantitative models for centralised supply chain coordination that emphasize inventory management for the period from 1990 to end of 2007. In this chapter, we will classify the models on the basis of incentive schemes, supply chain levels, and assumptions. This chapter will also provide a map indicative of the limitations of the available studies and steer readers to future directions along this line of research. Centralised supply chain coordinationA typical supply chain consists of multistage business entities where raw materials and components are pushed forward from the supplier's supplier to the customer's customer. During this forward push, value is gradually added at each entity in the supply chain transforming raw materials and components to take their final form as finished products at the customer's end, the buyer. These business entities may be owned by the same organization or by several organizations. Goyal & Gupta (1989) suggested that coordination could be achieved by integrating lotsizing models. However, coordinating orders among players in a supply chain might...

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Section: Multiple Buyersmentioning

confidence: 99%

Section: Multiple Buyersmentioning

confidence: 99%

Section: Multiple Buyersmentioning

confidence: 99%

Section: Multiple Buyersmentioning

confidence: 99%

See 2 more Smart Citations

Quantitative Models for Centralised Supply Chain Coordination

Jaber¹,

Zolfaghari²

2008

Supply Chain

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“…Haq et al (1991) considered a three echelon system with one production facility, several warehouses and several retailers. Woo et al (2001) considered an integrated inventory system where a vendor purchases and process raw materials and delivered the finished items to multiple buyers. Rau et al (2003) developed a multi-echelon inventory model for a deteriorating item and derived an optimal joint total cost from an integrated perspective among the suppliers, the producer and the buyers.…”

Section: Introductionmentioning

confidence: 99%

Order Size Dependent Trade Credit Study in a Three Echelon Supply Chain Model

Singh¹,

Vaish²,

Singh³

2014

IJCATR

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Abstract:In present study, we generalize order linked trade credit policy in three echelon supply chain system where manufacturer, distributor and retailer are involved and manufacturer provide a delay period to distributor and distributor also provide a order linked trade credit policy to his retailers. Whole study is discussed in time dependent production and demand rate. We model a three echelon supply chain system as cost minimization to determine the system's optimal cycle time. In this paper, we determine the optimal cycle time, optimal order quantity and optimal payment time. Finally numerical examples are given to illustrate the result and the managerial insights are also obtained.

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Integrated Supplier Selection, Pricing and Inventory Decisions in a Multi-level Supply Chain

Huang

2012

Decision-Making for Supply Chain Integration

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An integrated inventory model for a single vendor and multiple buyers with ordering cost reduction

Cited by 129 publications

References 14 publications

Quantitative Models for Centralised Supply Chain Coordination

Quantitative Models for Centralised Supply Chain Coordination

Order Size Dependent Trade Credit Study in a Three Echelon Supply Chain Model

Integrated Supplier Selection, Pricing and Inventory Decisions in a Multi-level Supply Chain

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