This paper explores the relationship between constrained capacity and supply chain performance. Six capacity constraint levels are studied under different inventory policies and information sharing strategies. The results suggest that an increment of production capacity, used in industry as local approach to manage increasing incoming orders, does not necessarily imply an improvement in custome...

As part of its growth strategy, Caterpillar Inc. plans to launch a new P2000 product line of \compact" construction equipment and work tools. In anticipation of this, they asked the authors to construct and analyze potential P2000 supply chain con gurations. Through the use of decomposition, and results from network ow theory, inventory theory, and simulation theory, we were able to provide a s...

The strategy of integration known as VMI (Vendor-Managed Inventory) allows the coordination of inventory policies between producers and buyers in supply chains. Based on a new proposed model for the implementation of VMI in a chain of two links composed of a producer and a buyer, this paper studies the evolution of individual strategies of the producer and the buyer by a formalism derived from ...

Group-buying auction has become a popular marketing strategy in the last decade. In this paper, a stochastic model is developed for an inventory system subjects to demands from group-buying auctions. The model discussed here takes into the account of the costs of inventory, transportation, dispatching and re-order as well as the penalty cost of non-successful auctions. Since a new cycle begins ...

This paper investigates the impact of a vendor managed inventory (VMI) strategy upon transportation operations in a supply chain. Specifically, the issue of batching to enable better use of transport vehicles is studied. A system dynamics methodology is used to develop difference equation models of three scenarios–– traditional, internal consolidation and VMI. The holistic nature of inventory m...

In the competitive retail industry many retailers employ the strategy of bundling goods they merchandize with optional value-added packages to enhance the attraction of the goods and increase the revenue. The package offerings can vary with the inventory level of the goods. Offering such packages impacts upon the sales of the goods, and hence, affects inventory management of the goods. In this ...

The cooperation strategy followed by the buyer and vendor results is an overall effect on the saving percentage along with the impact of inventory costs such as holding cost, fixed and linear backorder cost. This paper deals with buyer vendor incentive inventory model with fixed lifetime product with fixed and linear back order cost. A distinguishing feature of this model is that both fixed and...

The application of switch contol methodology in complex system such as industry of mechinery, electronics is widespread. In this paper the robust control system with time-delay based on switch theory (STDRCS) is presented to manage the inventory of cluster supply chains(CSC). The hybrid control approach might be effectively used to overcome model uncertainties and external disturbance. And the ...

This paper studies pricing strategies of a monopolist when customers are strategic and infer the product quality from historical sales and price paths. This behavior may be expected when selling a new, innovative product whose quality is unknown and customers have some, but, imperfect information about the product quality. The monopolist can sell a finite amount of inventory during a finite hor...

Market-makers have the obligation to trade fixed amounts of assets at quoted bid or ask prices, and their inventories are exposed to the potential loss when the market price moves in an undesirable direction. One approach to reduce the risk associated with price uncertainty is to adjust the inventory at the price of losing potential spread gain. For a single-asset model, we show that a threshol...