Vendor managed inventory contracts – coordinating the supply chain while looking from the vendor’s perspective

Sainathan, Arvind; Groenevelt, Harry

doi:10.1016/j.ejor.2018.06.028

Cited by 56 publications

(25 citation statements)

References 47 publications

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“…In order to mitigate this loss of efficiency, numerous other contracting models have been developed in supply chain management. Typical among them is the buyback model [28]. In this type of contract, a retailer pays a wholesale price for each unit ordered but can return at the end of the selling season all or a fraction of the unsold items to the manufacturer with a predetermined full or partial refund per unit.…”

Section: Literature Reviewmentioning

confidence: 99%

Simulation Study of Collaborative Inventory Management for Seasonal Products by Incorporating Newsvendor and Buyback Contract

Fillie¹,

Arvitrida²,

Pujawan³

2019

Proceedings of the 2019 1st International Conference on Engineering and Management in Industrial System (ICOEMIS 2019)

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As supply chains become leaner, supply chain (SC) managers are often subjected to decrease inventory. Determining the appropriate inventory level for seasonal products without compromising the level of service provided to customers is crucial. This poses a challenge for supply chain managers to find the best trade-off between having excess or less inventory. A well-known model to determine such trade-offs is the newsvendor model. This model is focused on a decentralized business strategy. This research seeks to evaluate the contributions of collaborative inventory management for seasonal products with demand uncertainties having a single order in a cycle through newsvendor and buyback contract for a two-tier SC for both decentralized and centralized business strategies. To explore the effects of these uncertainties on seasonal products such as newspaper, apparels, perishable foods and major holiday products, a Monte Carlo simulation model was used to optimize the decision variable (the maximum order quantity, Q*) to improve the financial performance of the SC. The results indicate that wholesale price discount and buyback contract are efficient in collaborative inventory management. Buyback contract is less attractive when costs associated with returns are high. High return costs reduce the profitability of the SC significantly.

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Section: Literature Reviewmentioning

confidence: 99%

Simulation Study of Collaborative Inventory Management for Seasonal Products by Incorporating Newsvendor and Buyback Contract

Fillie¹,

Arvitrida²,

Pujawan³

2019

Proceedings of the 2019 1st International Conference on Engineering and Management in Industrial System (ICOEMIS 2019)

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“…Some previous studies proved that coordinating the supply chain could minimize the cost [18][19][20]. With coordination in SCM, buyers and sellers can get the benefit.…”

Section: Introductionmentioning

confidence: 98%

“…A good coordination scheme can coordinate sellers and buyers more flexible [18]. According to Sainathan and Groenevelt [19], there are several types of contracts that can coordinate supply chains, including quantity discounts, buyback, and revenue sharing. In the other studies, delay in payment contracts also successfully organized several players in the supply chain system [21].…”

Section: Introductionmentioning

confidence: 99%

Integrated Green Supply Chain Model to Reduce Carbon Emission with Permissible Delay-in-Payment Consideration

Ibrahim

Putri

2019

JTI

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In practice, the policy of delaying payment periods is prevalent between players in a supply chain system. Generally, payments made at the end of the permitted period. Supply chain management is one of the keys to corporate sustainability that the activities have an impact on the environment. This paper aims to develop an integrated green supply chain model with a permissible delay in payment consideration. In this research, the author develops a mathematical model to find the effect of delay in payment on emissions costs without ignoring the economic performance of a supply chain. The author develops four different scenarios model. Furthermore, numerical experiments and sensitivity analysis tests were conducted. Result of the study shows that delay in payment is integrated players into the supply chain system. It has a positive impact on reducing supply chain emissions costs.

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“…Subrata [8] investigated a special NVM in which the price of inventory after the selling period is a decision variable. Sainathan and Groenevelt [9] abled to analyze a supply chain with various assumptions like buyback and discount by using the NVM. Tekin and Özekici [10] dealt with a case in which there is risk in both demand and supply by using mean variance framework in the NVM.…”

Section: Introductionmentioning

confidence: 99%

A two-echelon newsvendor problem with limited budget and capacity

Yazdi

Pasandideh

2020

Scientia Iranica

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In this paper, two-echelon newsvendor problem is considered. Many real-life situations like fashion, food industries, and healthcare services match newsvendor problem. Our problem is determining levels of inventory in order to optimize the profit and service level in selling a product. This product is made up of several raw materials. Only the distribution of demand is known, and the hot season of selling the product is just a short period and after that, the price of the product drops dramatically. The storage space and initial budget are limited. We modeled and solved the problem as an unconstrained nonlinear optimization problem using two nonlinear techniques, the sequential unconstrained minimization technique (SUMT) and steepest descent (SD).

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Vendor managed inventory contracts – coordinating the supply chain while looking from the vendor’s perspective

Cited by 56 publications

References 47 publications

Simulation Study of Collaborative Inventory Management for Seasonal Products by Incorporating Newsvendor and Buyback Contract

Simulation Study of Collaborative Inventory Management for Seasonal Products by Incorporating Newsvendor and Buyback Contract

Integrated Green Supply Chain Model to Reduce Carbon Emission with Permissible Delay-in-Payment Consideration

A two-echelon newsvendor problem with limited budget and capacity

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