Optimal coordinated supply chain strategy with price and time sensitive demand
22 Aug 2011-International Journal of Business Performance and Supply Chain Modelling (Inderscience Publishers Ltd)-Vol. 3, Iss: 3, pp 208-225
TL;DR: The results show that the vendor gets more advantage when the collaborative model is applied and the buyer's profit is bigger in the Stackelberg game model than the Collaborative model.
Abstract: In this study, inventory models are developed for coordinated supply chain using Stackelberg game framework. In the proposed model, customer demand is assumed to be price and time sensitive. The buyer attempts to adjust retail selling prices by charging premium or offering discount to the floor selling price depending upon the optimistic or declining market conditions. The aim of this research paper is to analyse the optimal pricing policy that maximises total profit for both the players under the principles of coordination, and competition. Some numerical examples are given to study the model. The results show that the vendor gets more advantage when the collaborative model is applied and the buyer’s profit is bigger in the Stackelberg game model than the collaborative model.
Citations
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01 Jan 2014
TL;DR: In this article, an inventory model with imperfect production process is developed for time-declining demand pattern, with an objective to maximize total profit using Euler-Lagrange theory in a single item setting.
Abstract: An inventory model with imperfect production process is developed for time-declining demand pattern. Imperfect production process results into a mix of good quality and defective items. Some of the defective items can be corrected to an extent with additional reworking cost. Reliability of the production process is considered as the decision variable. Optimum value of the reliability parameter helps in long-term strategic decisions regarding investments in production technology; process know-how and product design complexity. Model is developed with an objective to maximize total profit using Euler-Lagrange theory in a single item setting. Effects of inflation and time value of money on total profit are also considered. Results obtained are validated by numerical example. Sensitivity analysis of various parameters is carried out to derive managerial insights.
8 citations
Cites background from "Optimal coordinated supply chain st..."
...Shah et al. (2011) proposed inventory model for time-sensitive as well as price dependent demand....
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Dissertation•
01 Jan 1994
TL;DR: In this paper, the problem of determining an optimal length of credit period from the perspective of supplier is addressed. But the authors assume that a retailer jointly determines the unit retail price and order size to maximize profit when he/she purchases a product for which the supplier offers a trade credit.
Abstract: Abstract This paper deals with the problem of determining an optimal length of credit period from the perspective of supplier. We assume that a retailer jointly determines the unit retail price and order size to maximize profit when he/she purchases a product for which the supplier offers a trade credit. Two widely used demand functions are adopted for the study in which demands are decreasing functions of the retail price. A procedure is presented which shows how to achieve an optimal length of credit period for suppliers. The effects of credit period on the behaviour of retailers are also investigated using an example.
6 citations
TL;DR: An optimisation model is formulated for selecting machining datum and tolerances and implemented with an evolutionary algorithm namely differential evolution (DE) in process planning.
Abstract: The main purpose of tolerance charting is to determine the optimal allocation of working dimensions and working tolerances such that the blueprint dimensions and tolerances can be achieved to accomplish the cost objectives. The selection of machining datum and allocation of tolerances are critical in any machining process planning as they directly affect any setup methods/machine tools selection and machining time. In order to reduce the machining time and cost, an optimum process plan should be designed. Due to the existence of intermediate machining operation, a large number of intermediate part features may be used as the datum for the machining of others. This paper mainly focuses on the selection of optimum machining datums and machining tolerances simultaneously in process planning. In this work, an optimisation model is formulated for selecting machining datum and tolerances and implemented with an evolutionary algorithm namely differential evolution (DE).
2 citations
Cites background from "Optimal coordinated supply chain st..."
...Shah et al. (2011) have analysed the optimal pricing policy in order to maximise total profit for both the players under the principles of coordination, and competition....
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TL;DR: Over view of how existing apple supply chains is working in India and various businesses associated with it is provided to provide an over view of whether unorganised and big retail chains dependency on each other for apple supply chain.
Abstract: Numerous issues are being raised towards survival of unorganised retailing or whole sale markets vis-a-vis organised agri-food retail in India. The purpose of present study is to provide an over view of how existing apple supply chains is working in India and various businesses associated with it. The study is of exploratory in nature and explores unorganised and big retail chains dependency on each other for apple supply chain. The paper also describes production and price curves from farm to end customer for India descriptive research. The primary information was collected through personal interview and by observation method and secondary data is collected from APMC and other published sources. The paper brings forth factors for maximising return on investment to excel in unorganised business and impact of agri-food retail chains on unorganised retailing in India. The paper also discusses innovations in unorganised retail sector and concludes with hurdles and challenges for establishment of organised retailing in India. Supply chain partners will be able to understand the business better as well as will be able to further increase their business and profits.
1 citations
Cites result from "Optimal coordinated supply chain st..."
...According to Shah et al. (2011), goods falling under a price-time sensitive market category, the buyers (middle men in agri-foods) profit are bigger than vendor (farmers/growers) in Stackelberg game model than the collaborative model....
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...The above argument is justified by various studies conducted by Shah et al. (2011)....
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Journal Article•
TL;DR: A kind of Stackelberg game of supply chain, where the leader is producer and the follower is supplier is discussed, and the solution is deduced and shows that Stackellberg game is effective and practical.
Abstract: Coordinating producer and supplier is one of main issues of supply chain with uncertain delivery. Considering interaction between the members in supply chain, there is a Stackelberg game in supply chain. The nature of the Stackelberg game is discussed in this paper. The solution of the game is deduced. As the leader, the producer in supply chain initializes the optimal order quantity and penalty cost policy for minimizing his cost, while as the follower, the supplier responds with the optimal extra capacity policy for maximizing his profit. Appling genetic algorithm, a simulation about tail rolled steel products is done based on Shanghai BaoSteel industry trade co.. The solution is adopted for implementing JIT in the supply system of Shanghai BaoSteel industry trade co.. The simulation solution shows that Stackelberg game is effective and practical.
References
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TL;DR: In this paper, a more general joint economic-lot-size model is suggested and it is shown to provide a lower or equal joint total relevant cost as compared to the model of Banerjee.
Abstract: Banerjee [1] developed a joint economic-lot-size model for the case where a vendor produces to order for a purchaser on a lot-for-lot basis under deterministic conditions. The assumption of lot-for-lot bases is restrictive in nature. In this note, a more general joint economic-lot-size model is suggested and it is shown to provide a lower or equal joint total relevant cost as compared to the model of Banerjee.
654 citations
TL;DR: In this article, the authors consider a one-vendor multi-buyer integrated inventory model, where the vendor seeks to minimize his total annual cost subject to the maximum costs which buyers are prepared to incur.
535 citations
TL;DR: In this paper, a more general type of policy for the single-vendor, single-buyer integrated production-inventory model than has hitherto been presented, based on successive shipments to the buyer, within a single production batch, increasing by a fixed factor.
503 citations
TL;DR: In this paper, the problem of minimizing the mean total cost per unit time of manufacturing set-up, stock transfer, and stock holding is considered, and the structure of the globally optimal solution is derived and an algorithm for obtaining it is presented.
Abstract: This paper considers the problem of a vendor (manufacturer) supplying a product to a buyer (customer). The vendor manufactures the product in batches at a finite rate and ships the output to the buyer. The buyer then consumes the product at a fixed rate. The objective is to minimize the mean total cost per unit time of manufacturing set-up, stock transfer and stock holding. Previously published work has concentrated on finding optimal solutions from within given classes of policy. We derive the structure of the globally-optimal solution, set out an algorithm for obtaining it and illustrate the process with two numerical examples.
403 citations
334 citations