Coordination mechanism for a deteriorating item in a two-level supply chain system

Rahdar, Mohammad; Nookabadi, Ali Shahandeh

doi:10.1016/j.apm.2013.11.019

Cited by 39 publications

(16 citation statements)

References 33 publications

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“…They find that, when the manufacturer and the retailer share the investment cost of promotional effort equally, revenue sharing contract and revenue and cost sharing contract can both coordinate the supply chain perfectly, and the latter contract is easier to be accepted by the system. In addition, the studies [33,34] also investigate supply chain coordination for deteriorating items.…”

Section: Introductionmentioning

confidence: 99%

Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract

Zhang

Liu

Qiao

et al. 2015

Omega

169

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Section: Introductionmentioning

confidence: 99%

Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract

Zhang

Liu

Qiao

et al. 2015

Omega

169

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“…The Stackelberg approach is considered between the chain partners, where the vendor is the leader, and the retailers are the followers. Rahdar and Nookabadi [39] considered a supply chain including a manufacturer and several buyers and assumed that the inventory items deteriorate over time and its inventory level decreases. In order to determine the order policies, coordination over the supply chain is achieved by scheduling the buyers' delivery days and their coordination with the manufacturer's production cycle.…”

Section: Introductionmentioning

confidence: 99%

An Integrated Pricing and Inventory Model for Deteriorating Products in a two stage supply chain under Replacement and Shortage

Teimoury

Kazemi²

2017

Scientia Iranica

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Abstract. In this paper, a two-stage supply chain, including a wholesaler and a retailer, is investigated, in which the retailer acts as a vendor and sells the products to the nal customers. This chain only produces a single deteriorating product with constant deteriorating rate. In this chain, demand is deterministic, and lead time for replenishment and replacement of retailer's stock is considered to be zero. The objective of this study is to maximize total chain's pro t by determining the optimal values of retailer's selling price (p) and order cycle length (T ). Since due to deterioration, a part of the initial stock is deteriorated, the retailer residuals recycle the deteriorated part and replace them with healthy product as needed instead. Two scenarios with and without shortage assumptions are developed. Finally, numerical examples are presented to show the applicability of the proposed models, and sensitivity analysis on some parameter's values is conducted.

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“…They derived the optimal inventory policy to maximize the total profit of the supply chain when shortage is completely backordered. Rahdar and Nookabadi [29] developed a supply chain model for deteriorating items consisting of a manufacturer and several buyers. When the production rate of the manufacturer and the demand rates of the buyers are constant, they derived the optimal policy for coordinating production and delivery cycles.…”

Section: Supply Chain Coordination Models For Deteriorating Itemsmentioning

confidence: 99%

“…(30) and (31) into Eq. (29), and using Eq. (33), we simplify the retailer's profit under the RS contract as…”

Section: Appendix C Calculation Of Eq(22)mentioning

confidence: 99%

Coordinating a supply chain for deteriorating items with multi-factor-dependent demand over a finite planning horizon

Bai

et al. 2016

Applied Mathematical Modelling

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Coordinating a supply chain for deteriorating items with multi-factor-dependent demand over a finite planning horizon, Applied Mathematical Modelling (2016), Highlights• We prove the lower bound on penalty for decentralization.• We propose a revised revenue-sharing (RRS) contract to coordinate the developed system.• The RRS contract always yields a higher profit than the revenue-sharing (RS) contract.• Under these two contracts, the optimal conditions of attaining a win-win outcome are derived. AbstractThe paper considers a one-manufacturer and one-retailer supply chain for deteriorating items over a finite planning horizon. For the case with multi-factor-dependent demand, we analyze the coordination of the system within a contract mechanism. We first formulate and then compare a decentralized model and a centralized model; following this, we propose a revenue-sharing contract and a revised revenue-sharing contract to coordinate the decentralized supply chain. We illustrate the proposed models with a numerical example and sensitivity analysis of the coordination results on several key parameters. The results show that the supply chain's profit in the centralized system increases by at least 1 3 , both contracts can coordinate the system and the fraction parameter of the revenue exists when each contract is acceptable to both members of the supply chain, and the revised revenue-sharing contract always yields a higher profit than the revenue-sharing contract. Furthermore, the supply chain's profit under the revised revenue-sharing contract is shown to be equivalent to that in the centralized system.

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Coordination mechanism for a deteriorating item in a two-level supply chain system

Cited by 39 publications

References 33 publications

Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract

Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract

An Integrated Pricing and Inventory Model for Deteriorating Products in a two stage supply chain under Replacement and Shortage

Coordinating a supply chain for deteriorating items with multi-factor-dependent demand over a finite planning horizon

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