scispace - formally typeset
Search or ask a question
Journal ArticleDOI

A production-inventory model for a two-echelon supply chain when demand is dependent on sales teams׳ initiatives

TL;DR: In this paper, the authors investigated the issue of channel coordination for a two echelon supply chain consisting of one manufacturer and one retailer, and developed a production-inventory model that considered the procurement cost per unit as a function of the production rate.
About: This article is published in International Journal of Production Economics.The article was published on 2014-09-01. It has received 94 citations till now. The article focuses on the topics: Demand chain & Supply chain.
Citations
More filters
Journal ArticleDOI
TL;DR: In the special issue "Celebrating a century of the economic order quantity model in honor of Ford Whitman Harris" published by the International Journal of Production Economics as discussed by the authors, the authors presented a brief introduction to the papers included in this special issue and provided a basis for new directions in inventory management research.

146 citations

Journal ArticleDOI
TL;DR: In this article, the authors considered a three-echelon supply chain model where the supplier makes semi-finished products and transports to manufacturer for finished products, and the manufacturer transports products by single-setup-multi-delivery policy to multi-retailer.
Abstract: Several industries controls carbon emission during transporting products due to increased transportation for obtaining the best transportation way with reduced cost. This study considers a three-echelon supply chain model where the supplier makes semi-finished products and transports to manufacturer for finished products. The manufacturer transports products by single-setup-multi-delivery policy to multi-retailer. The aim of the model is to reduce the supply chain cost by considering variable transportation and carbon emission costs are considered due to several shipments. An algebraic approach is employed to obtain the closed-form solution. Numerical example, sensitivity analysis, and graphical representations are given to illustrate the model.

139 citations

Journal ArticleDOI
TL;DR: The proposed model investigates environmental impacts from production and transportation in a hybrid manufacturing-remanufacturing system which uses returnable transport items (RTI) for product transportation and develops best RTI management policies under the influence of these costs.

118 citations


Cites background from "A production-inventory model for a ..."

  • ...Traditionally, SCM is defined as the efficient planning, execution, and control of all the operations between suppliers, manufacturers, warehouses, retailers, and customers (Cárdenas-Barrón and Sana, 2014)....

    [...]

Journal ArticleDOI
TL;DR: In this paper, a channel coordination and quantity discounts between a vendor and a buyer with single-setup multi-delivery (SSMD) strategy was proposed to reduce the joint total cost among supply chain players.
Abstract: This paper illustrates a channel coordination and quantity discounts between a vendor and a buyer with single-setup multi-delivery (SSMD) strategy to reduce the joint total cost among supply chain players. The benefit of the coordination between a buyer and a vendor is considered as the vendor requests to the buyer for changing the ordering quantity such that the vendor can be benefited from lower inventory costs. After accepting the buyer’s condition, the vendor compensates the buyer for his increased inventory cost and gives consent for additional savings by offering a quantity discount. The centralized decision making is examined for the effect of this strategy with the presence of backorder for buyer and inspection cost for the vendor. The quantity discount strategy, with the presence of variable backorder and inspections, can allow more savings for all players of supply chain. Some numerical examples, sensitivity analysis, and graphical representations are given to illustrate more savings from existing literature and comparisons between the several demand values.

108 citations


Cites background from "A production-inventory model for a ..."

  • ...[23] S. S. Sana, “Optimal selling price and lotsize with time varying deterioration and partial backlogging,” Applied Mathematics and Computation, vol. 217, no. 1, pp. 185–194, 2010....

    [...]

  • ...Liu and Lian [22], Sana [23], and Sarkar [24] discussed fixed lifetime of products for single-stage inventory systems....

    [...]

  • ...References [1] L. E. Cárdenas-Barrón and S. S. Sana, “A production-inventory model for a two-echelon supply chain when demand is dependent on sales teams’ initiatives,” International Journal of Production Economics, vol. 155, pp. 249–258, 2014....

    [...]

  • ...The model considered only that type of product which has fixed lifetime (see, e.g., Sana [23])....

    [...]

  • ...Recently, Cárdenas-Barrón and Sana [1] developed an interesting problem of channel coordination on single-supplier singlemanufacturer model with backorder for buyer....

    [...]

Journal ArticleDOI
TL;DR: In this article, an economic order quantity inventory model of multi-items in a two-layer supply chain where demand is sensitive to promotional effort is proposed, where the supplier offers a delay period to the retailer for paying the outstanding amount of the purchasing cost for the finished products.

96 citations

References
More filters
Journal ArticleDOI
TL;DR: Experience has shown one manager a way to determine the economical size of lots, and interest on capital tied up in wages, material and overhead sets a maximum limit to the quantity of parts which can be profitably manufactured at one time.
Abstract: Reprinted from Factory, The Magazine of Management, Volume 10, Number 2, February 1913, pp. 135-136, 152. Interest on capital tied up in wages, material and overhead sets a maximum limit to the quantity of parts which can be profitably manufactured at one time; "set-up" costs on the job fix the minimum. Experience has shown one manager a way to determine the economical size of lots.

1,306 citations

Journal ArticleDOI
TL;DR: It is shown that buy-backs adversely affect supply chain profits, and higher buy-back prices imply lower profits, but coordinating contracts become more problematic if, for example, the retailer also stocks substitutes for the manufacturer's product.
Abstract: In this paper, a risk-neutral manufacturer sells a single product to a risk-neutral retailer. The retailer chooses inventories ex ante and promotional effort ex post. If the wholesale price exceeds marginal production cost, the retailer orders fewer than the joint profit-maximizing inventories. If the manufacturer attempts to coordinate inventories by buying back unsold units, then the retailer's promotional incentives are dulled. Under very general assumptions on the form of the effort function, we show that buy-backs adversely affect supply chain profits, and higher buy-back prices imply lower profits. Also, while a buy-back alone cannot coordinate the channel, coupling buy-backs with promotional cost-sharing agreements (if effort cost is observable), offering unilateral markdown allowances ex post (if demand is observable but not verifiable), or placing additional constraints on the buy-back (if demand is observable and verifiable) does result in coordination. This problem is not limited to returns policies but is shown to hold for a much larger set of contracts. The results are quite robust (e.g., when the retailer chooses effort before observing demand), but coordinating contracts become more problematic if, for example, the retailer also stocks substitutes for the manufacturer's product. Other model extensions are also discussed.

427 citations

Journal ArticleDOI
TL;DR: This paper addresses channel coordination by seeking optimal cooperative advertising strategies and equilibrium pricing in a two-member distribution channel and identifies the feasible solutions to a bargaining problem where the channel members can determine how to divide the extra profits.

288 citations

Journal ArticleDOI
TL;DR: This work identifies optimal co-op advertising and pricing strategies for both firms mostly analytically but it has to resort to numerical simulations in one case.

191 citations

Journal ArticleDOI
TL;DR: In this paper, an integrated production-inventory-marketing model is developed for determining the economic production quantity (EPQ) and economic order quantity (EOQ) for raw materials in a multi-stage production system.

177 citations