This paper aims to evaluate inventory cost of a Two-echelon serial supply chain system under vendor managed inventory program with stochastic demand, and examine the effect of environmental factors on the cost of overall system. For this purpose, we consider a two-echelon serial supply chain with a manufacturer and a retailer. Under Vendor managed inventory program, the decision on inventory ...

This paper considers the advertising, pricing, and service decisions simultaneously to coordinate the supply chain with a manufacturer and a retailer. The amount of market demand is influenced by advertising, pricing and service decisions. In this paper, three well-known approaches to the game theory, including the Nash, the Stackelberg-retailer, and the cooperative game are exploited to study ...

Abstract In this paper we consider a system consisting of a retailer, a supplier with a single processing unit, and a repair center. We assume that the retailer faces a Poisson demand, his ordering cost is zero or negligible, and for his inventory control he applies one-for-one ordering policy, that is, as soon as a demand arrives he orders one unit to the supplier. We also assume that when a d...

In this paper we consider a two-echelon supply chain system consisting of a supplier and a retailer. The supplier has an inventory system and a service unit to process the orders received from the retailer. Demands arrive to the retailer according to a Poisson process. Both supplier and retailer apply one-for-one ordering policy. The supplier’s lead time and the service time of his service unit...

Supply chain coordination has received substantial attention in the operations literature in recent years. Coordination issues in supply chains arise due to several factors, an important one being the difference in the cost impact of inventory and replenishment decisions on the manufacturer and retailer. In this paper, we address this asymmetry in cost impact that can lead to sub-optimal channe...

This paper considers a single-item, two-echelon, continuous-review inventory model. A number of retailers have their stock replenished from a central warehouse. The warehouse in turn replenishes stock from an external supplier. The demand processes on the retailers are independent Poisson. Demand not met at a retailer is lost. The order quantity from each retailer on the warehouse and from the ...

T paper studies a manufacturer that sells to a newsvendor retailer who can improve the quality of her demand information by exerting costly forecasting effort. In such a setting, contracts play two roles: providing incentives to influence the retailer’s forecasting decision and eliciting information obtained by forecasting to inform production decisions. We focus on two forms of contracts that ...

The paper establishes a fairness preference framework based on game theory of Nash bargaining, and builds a utility system about fairness preference. On the basis, we expeands the newboy model to behavior research. The analysis shows that because of the retailer and suppliers’ fairness preference, their optimal order quantities tend to became conservative, and the result shows that the greater ...

This article analyzes a supply chain management system (SCM), with two echelons. We consider a perishable inventory with Poisson demand, exponential life time and positive lead time at distribution center (DC) and retailer. Partial backlogging at retailer node is assumed with limited quantity. (s, S) policy at retailer and (M-1, M) policy at DC are assumed to get a tractable analytic solution. ...

We consider a two-echelon inventory system where the exogenous demands occur only at the retailer locations, and the demand rates are functions of an underlying continuoustime Markov chain. This underlying process may represent, for example, general economic conditions, the number of active users in the system, etcetera. Each retailer location follows a base-stock policy that is independent of ...