Supply chain coordination using revenue sharing contract with price discount and stochastic demand dependent on time and price
21 Jun 2016-International Journal of Integrated Supply Management (Inderscience Publishers (IEL))-Vol. 10, Iss: 2, pp 132-150
TL;DR: In this article, the coordination of two-echelon supply chains using stochastic demand that is dependent on retail price and time is studied. And the authors developed models for objective functions of supply chain members.
Abstract: This paper studies the coordination of two-echelon supply chains using stochastic demand that is dependent on retail price and time. Due to fewer tendencies of costumers to buy products, which are approaching their expiry date, price discount is an attractive mechanism to encourage consumers to purchase these products as considered in this paper. We develop models for objective functions of supply chain members. These models lead to the determination of the retail price and discount time. To coordinate supply chain, revenue sharing contract is also considered. Uniform distribution is used for stochastic part of demand and the situation is considered in which shortage cost is lower than surplus cost. Numerical example was solved to illustrate the model performance.
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TL;DR: In this article , a thorough and comprehensive model based on the Stackelberg game is proposed in order to consider a two-echelon supply chain with uncertain demand that is dependent upon price and time.
Abstract: Recent improvements in technologies highlight the importance of life-cycle management in the supply chain. This is more important when dealing with non-instantaneous deteriorating items due to the fact that these goods begin losing their marginal values once they are stored as inventories in the warehouses. In this regard, an accurate inventory policy should be taken into account for this type of deterioration. Considering different aspects of the supply chain, many assumptions have been made in the literature for inventory policies of non-instantaneous deteriorating items. Many of these simplifying assumptions are used in order to avoid the complexity of formulations and mathematical modelling. However, in this paper, a thorough and comprehensive model based on the Stackelberg game is proposed in order to consider a two-echelon supply chain with uncertain demand that is dependent upon price and time. Furthermore, a price-discount strategy is applied within the deterioration period as a persuasion strategy to increase customer demand and reduce deterioration costs. The different relationships between inventory parameters and variables are investigated by a precise sensitivity analysis, and the robustness of the presented results is confirmed. The results suggest the appropriate time for the beginning of a discount strategy and the amount of discount.
3 citations
TL;DR: The aim of this research is to balance the trade-off between two echelons of a supply chain consisting of a single outsourcer and a single subcontractor under a win–win partnership contract.
Abstract: In this paper, we focus on outsourcing activities optimization problem in single period setting. In some situations, capacity planning or outsourcing is a one-time event and can be modeled as a single period problem. The aim of this research is to balance the trade-off between two echelons of a supply chain consisting of a single outsourcer and a single subcontractor. Each part is composed of a failure-prone single machine that produces one product type to satisfy market requirements. The outsourcer’s manufacturing system is not able to satisfy the demand; in this case, outsourcing is allowed to recover the lack of capacity. We consider that the subcontractor can satisfy the demands of strategic clients and rent his machine for the outsourcer under a win–win partnership contract. We assume that the hazard failure rate depends on time and the adopted manufacture rate. When unforeseen failures occur, minimal repairs are implemented. Overhaul can be performed to reduce the degradation effects. Hence, we develop a mathematical model to define a profitability interval so that both parties of supply chain can be considered as winners. We seek to determine the contract parameters that suit both parties (duration, start and end dates, the production and outsourcing rates). Then, we develop an exact algorithm to solve the problem of single period optimization, which offers a better execution time through a series of test problems. Finally, we consider a sensitivity analysis based on outsourcing parameters (cost, periodicities, etc) to analyze their effects on partial costs and individual profit of each part, as well as the total profit generated by the system.
2 citations
01 May 2019
TL;DR: Three typical power optimization schemes for industrial users, all based on improved genetic algorithm (GA), significantly outperform traditional GA schemes in terms of satisfying the industrial power demands over economy, efficiency and accuracy separately.
Abstract: With the rapid development of intelligent electrical technologies and power demand response (DR), the power consumption scale of industrial users has expanded dramatically. Aiming at satisfying the diverse demands of industrial customers, the paper proposes three typical power optimization schemes for industrial users, which are all based on improved genetic algorithm (GA). Firstly, representative industrial load types and their corresponding demand response modes are put forward. Secondly, according to the respective demands of industrial users, a variety of power consumption models under time-of-use pricing are constructed and solved by improved genetic algorithm. Finally, the power optimization schemes proposed in the paper are verified by Matlab simulations. The results indicate that schemes designed by improved GA significantly outperform traditional GA schemes in terms of satisfying the industrial power demands over economy, efficiency and accuracy separately.
2 citations
Cites background from "Supply chain coordination using rev..."
...In order to speed up the transformation of power users from passive participants to active participants, the grid corporation has carried out some electricity policies, such as time-of-use pricing (TOU) and real-time pricing (RTP)[7], encouraging consumers to change the conventional mode of electricity consumption, promoting rational and efficient operation of power system and low-carbon sustainable development of society....
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