On a multi-period supply chain system with supplementary order opportunity

Li, Xiang; Li, Yongjian; Cai, Xiaoqiang

doi:10.1016/j.ejor.2010.08.019

Cited by 21 publications

(16 citation statements)

References 19 publications

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“…All these above papers mainly focus on the multiperiod decisionmaking from the perspective of one single firm. So far, very few studies (e.g., [11]) have been carried out from the perspective of the chain. By using game theoretic approach, they analyze the multiperiod production and ordering problem with a dominant supplier and without option contracts.…”

Section: Literature Reviewmentioning

confidence: 99%

“…As pointed out in Li et al [11] and Inderfurth et al [48], the policy parameters are too difficult to be calculated accurately. Subsequently, a tractable approximation is provided for the solution evaluation.…”

Section: Propositionmentioning

confidence: 99%

“…In recent years, the multiperiod inventory problem for one single firm has gradually become a hot topic, thereby attracting extensive interest of researchers [8][9][10]. However, very few papers (e.g., [11]) have discussed the related problem from the 2 Mathematical Problems in Engineering perspective of the chain. So far, the retailer-led supply chain management has often been discussed in the single-period setting.…”

Section: Introductionmentioning

confidence: 99%

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Multiperiod Production and Ordering Policies for a Retailer-Led Supply Chain through Option Contracts

Wan

Chen

2018

Mathematical Problems in Engineering

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This paper formulates two groups of multiperiod production and ordering models with call and bidirectional option contracts for a two-party supply chain consisting of one followed supplier and one dominant retailer, respectively. Based on dynamic programming theory, we characterize the optimal policy structures for two partners in each period. We also provide an approximation for the corresponding policy parameters evaluation in two cases. Then, we investigate the impacts of different option contracts and the demand risk on the decisions and performances of two members. Our results suggest that, whether concerning call or bidirectional option contracts, the optimal policies for two members always follow a base stock type. When the price parameters are the same for different option contracts, the service levels of both the system and the retailer are higher with call option contracts than with bidirectional ones, whereas the retailer's inventory risk is lower with bidirectional option contracts than with call ones. Under the same conditions stated above, call option contracts can always benefit the supplier, but not the retailer. Owing to the retailer's dominant position, call option contracts are better choice for the supply chain if the option (exercise) price is low (high), while bidirectional option contracts are more suitable choice for the supply chain if the option (exercise) price is high (low). In addition, an increase in the demand risk would prompt the supplier to increase his production quantity and the retailer to reduce the initial firm order quantity, either with call or bidirectional option contracts.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Propositionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Multiperiod Production and Ordering Policies for a Retailer-Led Supply Chain through Option Contracts

Wan

Chen

2018

Mathematical Problems in Engineering

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“…Li et al [8] also uses a game-type model but in a multi-period, finite horizon setting. Differently from our model, they consider the lost-sales case and only allow emergency orders to cover shortages after demand has been realized.…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring the economic consequences of letting a supplier hold reserve storage

Abginehchi

Larsen

Thorstenson

2015

Computers & Operations Research

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“…Multi-period supply chain coordination has thus generated considerable research interest in recent years. Most studies on multi-period supply chain have focused on multi-period order allocation decisions of the manufacturing industry (Liang and Cheng 2009), supply chain strategy design (Paksoy and Chang 2010), continuous replenishment (Li, Li, and Cai 2011), channel coordination, and so on. Some studies on the periodic order allocation problem have also been reported, but these studies have mainly focused on multi-period supplier selection (Ustun and Demirtas 2008).…”

Section: International Journal Of Production Research 6609mentioning

confidence: 99%

An order allocation model in multi-period logistics service supply chain based on cumulative prospect theory and capacity matching constraint

Liu

et al. 2014

International Journal of Production Research

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By considering a two-echelon supply chain that consists of a logistics service integrator (LSI) and several functional logistics service provider (FLSP), this study builds a comprehensive subjective utility (CSU) function of FLSP in multiperiod based on cumulative prospect theory and establishes an order allocation model in multi-period logistics service supply chain. This model considers three goals: to minimise the cost of LSI, to maximise the satisfaction of the FLSP and to maximise the capacity matching degree among different logistics capacities. This study uses an improved technique for order performance by similarity to ideal solution to obtain the optimal solution. A numerical example is given by software MATLAB 7.8. The effects of the behavioural parameters of FLSPs on order allocation are also discussed. When the LSI allocates orders, the FLSP, who has larger ratio of loss to gain range by the sensitivity decreasing rate, should be selected to obtain a large value of CSU. No obvious rule is found for the influence of the loss aversion coefficient of FLSPs on the CSU of FLSPs in a multi-period.

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On a multi-period supply chain system with supplementary order opportunity

Cited by 21 publications

References 19 publications

Multiperiod Production and Ordering Policies for a Retailer-Led Supply Chain through Option Contracts

Multiperiod Production and Ordering Policies for a Retailer-Led Supply Chain through Option Contracts

Exploring the economic consequences of letting a supplier hold reserve storage

An order allocation model in multi-period logistics service supply chain based on cumulative prospect theory and capacity matching constraint

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