Study on Supply Chain Disruption Management under Service Level Dependent Demand

Abstract

This paper studied pricing, service level, and production quantity decision problems in a supply chain with one manufacturer and one retailer under demand and production cost disruptions. The joint impact of demand and production cost disruptions on optimal pricing, service level, and production decisions in centralized and decentralized supply chain was analyzed, respectively. By solving the optimization problem, the optimal decisions of the supply chain were obtained under different demand and production cost disruptions scenarios. It is found that the original production quantity and demand-stimulating service level exhibit some robustness under disruptions in both centralized and decentralized supply chains, while the original optimal pricing does not. In centralized supply chains, it is always beneficial for the central decision-maker to knowing of the accurate information of disruptions. However, sharing disruption information is not always beneficial for both the manufacturer and retailer in decentralized supply chain.

RETRACTED: Internet of Things (IoT) and its impact on supply chain: A framework for building smart, secure and efficient systems

“…• In transportation function: the IOT achieve accurate and timely delivery via using sensors and networks [36]. It also saves scanning and recording times via using smart phones [37].…”

Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract

“…Chen and Yang [ 10 ] examined service cooperation in a dual-channel supply chain where the manufacturer consign his service to the retailer. Li et al [ 11 ] investigated the effects of production cost disruptions and demand on optimal pricing, service level, and production decisions. Pei and Yan [ 12 ] showed that the retail services could be used as an incentive to coordinate the relationship between members.…”