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

Abstract

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.

A systematic analysis of digital supply chain, big data and manufacturing lean time in industrial companies

“…These kind of detrimental consequences on lead-time uncertainties, which have an immediate influence on the DSC process, need to be made known to businesses. More coordination across the various DSC activity phases could improve lead-time efficiency (Fander et al, 2021). Additionally, MLT is thought to have a significant influence on planning at each stage of the DSC (Carvalho et al, 2022).…”

Research on Supply Chain Coordination Decision Making under the Influence of Lead Time Based on System Dynamics

“…Meanwhile, in the study of how to formulate optimal ordering and inventory cost control strategies to enhance the overall performance of the supply chain, it was found that the reasonable control of lead time shortened the lead time, and this shorter lead time allowed retailers to place orders closer to the beginning of the peak selling season, which effectively lowered the inventory level [11,12]. On the other hand, determining the right delivery time facilitates the supplier to have more sufficient time to supply the product and its initial cost will be reduced, which will ultimately realize an increase in profit for both parties [13,14]. The rationalization of lead time control is usually based on the cross impacts from factors such as changing demand patterns in the input system, customer channel preferences, etc.…”

“…In order to ensure that the test results are in line with reality, this article takes dairy beverages in fast-moving consumer products as an example for simulation analysis. The simulation data and variable relationships included in the model refer to relevant information on dairy beverages in Z supermarket and model materials in references [12][13][14].…”

Supply chain coordination with flexible payment policy under effect of green technology investments

“…Fander et al [12] gave a model for chemical supply chain. Manufacturer uses technology level to provide high quality products.…”

“…Now we proceed to integrate them for obtaining total profit of the supply chain. Total profit of supply chain is shown below in equation (12).…”