T paper investigates the role of time in forecast information sharing and decision making under uncertainty. To do so, we provide a general framework to model the evolutions of forecasts generated by multiple decision makers who forecast demand for the same product. We also model the evolutions of forecasts when decision makers have asymmetric demand information and refer to it as the Martingal...

Article history: Received 1 January 2010 Received in revised form 10 March 2010 Accepted 1 April 2010 Available online 30 April 2010 Vendor Managed Inventory (VMI) is one of the effective techniques for managing the inventory in supply chain. VMI models have been proven to reduce the cost of inventory compared with traditional economic order quantity method under some conditions such as constan...

The objective of this work is to study optimal Vendor-Managed Inventory policies in distributions systems in which demand and delivery processes are characterized by a discreteevent dynamics. In Vendor-Managed Inventory policies, the supplier organizes the deliveries to the customer in order to satisfy its demand by minimizing transportation costs and holding costs of the customer. In the consi...

In a recent paper, Soni and Shah [Soni, H., Shah, N. H., 2008. Optimal ordering policy for stock-dependent demand under progressive payment scheme. European Journal of Operational Research 184, 91-100] developed a model to find the optimal ordering policy for a retailer with stock-dependent demand and a supplier that offers a progressive payment scheme to the retailer. This note corrects some e...

and Applied Analysis 3 Table 1: Comparison between the papers discussing integrated inventory model with a trade credit. Author s Demand rate Production rate Production/purchase cost Freight rate Wholesale price Abad and Jaggi 39 Retail price sensitive Constant Constant — Constant Jaber and Osman 40 Constant — — — Constant Yang and Wee 41 Retail price sensitive — Constant — Constant Sheen and T...

We consider a two-stage supply chain comprising two retailers and a single supplier. Each retailer receives a signal of the consumer demand, and bids for the capacity of the supplier. The supplier sells his capacity as a bundle, and announces the winner as well as the auction price. Both retailers can get additional units in a procurement market when the auction closes, and then engage in a Cou...

E the tension between theory and practice regarding complexity and performance in contract design is especially relevant. The goal of this paper is to understand why simpler contracts may commonly be preferred in practice despite being theoretically suboptimal. We study a two-tier supply chain with a single supplier and a single buyer to characterize the impact of contract complexity and asymme...

In a highly competitive scenario, suppliers play a vital role in making a business organization successful. Business of any organization is continuous process and therefore the supplier selection is also dynamic in nature. This is quite natural as the organization’s demand; supplier’s capacity, quality level, lead time, unit part cost and fixed transportation cost of supplier varies with time. ...

We consider a stochastic inventory control problem in which a buyer makes procurement decisions while facing periodic random demand and two supply sources, namely, a long-term contract supplier and a spot market. The contract between the buyer and the supplier partially shields the latter from the vicissitudes of the spot market, in that the price paid by the buyer to the supplier is only parti...

The importance of a long-term relationship between a manufacturing ®rm and its supplier(s) has been emphasized in the literature on supply chain management. Essential to such a relationship is the coordination among participants in a supply chain. In order to sustain the relationship, the coordination should enhance the pro®tability of not only the manufacturer, but also the supplier(s). In thi...