We study the impact of the efforts aimed at reducing the lead-time variability in a quality-adjusted stochastic inventory model. We assume that each lot contains a random number of defective units. More specifically, a logarithmic investment function is used that allows investment to be made to reduce lead-time variability. Explicit results for the optimal values of decision variables as well a...

We investigate the implications of social learning on a monopolist firm’s pricing and inventory decisions. In our model, customers who purchase the product early in the selling season report their ex-post opinions of product quality through buyer reviews, while customers remaining in the market observe these reviews before making purchasing decisions. Because customers are heterogeneous in thei...

S upply disruptions are all too common in supply chains. To mitigate delivery risk, buyers may either source from multiple suppliers or offer incentives to their preferred supplier to improve its process reliability. These incentives can be either direct (investment subsidy) or indirect (inflated order quantity). In this study, we present a series of models to highlight buyers’ and suppliers’ o...

The use of reverse auctions for procurement activities has grown tremendously over the last several years. The majority of these auctions use a single dimension (price) format while providing constraints on non-price attributes such as quality and lead time. In this research, we present an auction mechanism for a buyer whose utility function is known and dependent on three attributes: price, qu...

In supply chain co-opetition, firms simultaneously compete and co-operate in order to maximize their profits. We consider the nature of co-opetition between two firms: The product supplier invests in the technology to improve quality, and the purchasing firm (buyer) invests in selling effort to develop the market for the product before uncertainty in demand is resolved. We consider three differ...

modeling is one of the most interesting areas in various fields of science. unfortunately data quality, which has an important role in the modeling, is not considered. in fact, most often processes encounter disturbances which results in the collection of abnormal data and may lead to a model different from the real behavior of the process. on the other hand, most of real industrial processes a...

W consider a decentralized assembly system in which a buyer purchases components from several first-tier suppliers. We examine the dynamics of suppliers’ investments in cost-reduction initiatives over the life cycle of a product under different procurement approaches. We model the suppliers’ investment decisions under cost-contingent contracts, with wholesale prices determined on the basis of t...

This study considers a two-echelon supply chain (SC) consisting of single vendor and buyer by reducing delivery time. paper examines time optimization as an essential component lead times. The length production are studied simultaneously. decision variable is considered in the proposed model. Reducing vital incentive factor encouraging to participate coordinated model guarantee profitability. A...

    inventory model,   backorder   buyer ,   vendor,   lot for lot policy In this paper, an inventory model for two-stage supply chain is investigated. A supply chain with single vendor and single buyer is considered. We assume that shortage as a backorder is allowed for the buyer and the vendor makes the production set up every time the buyer places an order and supplies on a lot for lot basis...