Buradasınız

Supply Chain Single Vendor – Single Buyer Inventory Model with Price - Dependent Demand

Journal Name:

Publication Year:

DOI: 
http://dx.doi.org/10.3926/jiem.577
Abstract (2. Language): 
Purpose: The aims of this article are to develop an integrated production-inventory-marketing model for a two-stage supply chain, and to study the effect of coordination on the performance of the system. The demand rate of the end customer is assumed to be sensitive to the selling price. The inventory models are developed, and then optimal values of the selling price, order quantity and number of shipments for the independent and also joint supply chain are determined. In addition, the effects of coordination and the parameters of the model on the optimal solution and the performance of the supply chain are investigated. Design/methodology: Mathematical modeling is used to obtain the profit functions of the vendor, the buyer and the whole supply chain. Then, the iterative solution algorithm is presented to solve the models and to determine the optimal solution in the coordinated/noncoordinated supply chain. Findings: It is observed that under joint optimization, the demand rate and the supply chain’s profit are higher than their values under independent optimization, especially for the more price sensitive demand. Therefore, coordination between the buyer and the vendor is advantageous for the supply chain. On the other hand, joint optimization will be less beneficial when there isn’t a significant difference between the buyer’s and the vendor’s holding costs.Originality/value: The main contribution of the article is to incorporate the pricing into ordering and shipping decisions of the supply chain with one vendor and one buyer, and also to investigate the effect of coordination on the optimal solution and performance. IsoIso.
733
748

REFERENCES

References: 

Banerjee, A. (1986). A joint economic lot size model for purchaser and vendor. Decision
sciences, 17(3), 292-311. http://dx.doi.org/10.1111/j.1540-5915.1986.tb00228.x
Burwell, T.H., Dave, D.S., Fitzpatrick, K.E., & Roy, M.R. (1997). Economic lot size model for
price-dependent demand under quantity and freight discounts. International Journal of
Production Economics, 48(2), 141-155. http://dx.doi.org/10.1016/S0925-5273(96)00085-0
Chan, L.M., Shen, Z.M., Simchi-Levi, D., & Swann, J.L. (2004). Coordination of pricing and
inventory decisions: a survey and classification. International Series in Operations Research
and Management Science, 74, 335-392. http://dx.doi.org/10.1007/978-1-4020-7953-5_9
Chen, L.H., & Kang, F.S. (2010). Integrated inventory models considering the two-level trade
credit policy and a price-negotiation scheme. European Journal of Operational Research,
205, 47-58. http://dx.doi.org/10.1016/j.ejor.2009.11.028
Chung, C.J., & Wee, H.M. (2008). An integrated production-inventory deteriorating model for
pricing policy considering imperfect production, inspection planning and warranty-period-and
stock-level-dependant demand. International Journal of Systems Science, 39(8), 823–837.
http://dx.doi.org/10.1080/00207720801902598
Chung, K.-J., & Liao, J.-J. (2011). The simplified solution algorithm for an integrated supplier–
buyer inventory model with two-part trade credit in a supply chain system. European Journal
of Operational Research, 213, 156–165. http://dx.doi.org/10.1016/j.ejor.2011.03.018
Eliashberg, J., & Steinberg, R. (1993). Marketing-production joint decision-making. Handbooks
in operations research and management science, 5, 827-880. http://dx.doi.org/10.1016/S0927-
0507(05)80041-6
Glock, C.H. (2012). The joint economic lot size problem: A review. International Journal of
Production Economics, 135(2), 671–686. http://dx.doi.org/10.1016/j.ijpe.2011.10.026
Goyal, S.K. (1976). An integrated inventory model for a single supplier–single customer
p r o b l em. International Journal of Product ion Research, 1 5( 1 ) , 1 0 7 - 11 1 .
http://dx.doi.org/10.1080/00207547708943107
Hamasi, A., Ghfari, F., Hamdi, K., & Biranvand, E. (2006). Estimating of newsprint demand
function and consumption forecasting in Iran. Journal of Agricultural Sciences, 12(3), 635–
645.
Hays, F.H., & DeLurgio, S.A. (2009). Where’s the Beef?: Statistical demand estimation using
supermarket scanner data. Journal of Case Research in Business and Economics, 1, 40–51
Hill, R.M. (1997). The single-vendor single-buyer integrated production-inventory model with a
generalised policy. European Journal of Operational Research, 97, 493-499.
http://dx.doi.org/10.1016/S0377-2217(96)00267-6
Ho, C.H., Ouyang, L.Y., & Su, C.-H. (2008). Optimal pricing, shipment and payment policy for
an integrated supplier–buyer inventory model with two-part trade credit. European Journal
of Operational Research, 187, 496–510. http://dx.doi.org/10.1016/j.ejor.2007.04.015
Ho, C.H. (2011). The optimal integrated inventory policy with price-and-credit-linked demand
under two-level trade credit. Computers & Industrial Engineering, 60, 117-126.
http://dx.doi.org/10.1016/j.cie.2010.10.009
Khanra, S., Sana, S.S., & Chaudhuri, K. (2010) An EOQ model for perishable item with stock
and price dependent demand rate. International Journal of Mathematics in Operational
Research, 2(3), 320-335. http://dx.doi.org/10.1504/IJMOR.2010.032721
Kim, J., Hong, Y., & Kim, T. (2011). Pricing and ordering policies for price-dependent demand in
a supply chain of a single retailer and a single manufacturer. International Journal of
Systems Science, 42(1), 81-89. http://dx.doi.org/10.1080/00207720903470122
Kim, S.L., & Ha, D. (2003). A JIT lot-splitting model for supply chain management: Enhancing
buyer–supplier linkage. International Journal of Production Economics, 86(1), 1-10.
http://dx.doi.org/10.1016/S0925-5273(03)00006-9
Lau, A.H.L., & Lau, H.-S. (2003). Effects of a demand-curve’s shape on the optimal solutions of
a multi-echelon inventory/pricing model. European Journal of Operational Research, 147(3),
530-548. http://dx.doi.org/10.1016/S0377-2217(02)00291-6
Lin, Y.J., & Ho, C.H. (2011). Integrated inventory model with quantity discount and pricesensitive
demand. Top, 19(1), 177-188. http://dx.doi.org/10.1007/s11750-009-0132-1
Ouyang, L.Y., Wu, K.S., & Ho, C.H. (2004). Integrated vendor–buyer cooperative models with
stochastic demand in controllable lead time. International Journal of Production Economics,
92(3), 255-266. http://dx.doi.org/10.1016/j.ijpe.2003.10.016
Rad, M.A., & Khoshalhan, F. (2011). An integrated production- inventory model with backorder
and lot for lot policy. International Journal of Production Research & Industrial Engineering,
22(2), 127-134.
Rad, M.A., Tarokh, M.J., & Khoshalhan, F. (2011). Single-Setup-Multiple-Deliveries for a Single
Supplier- Single Buyer with Single Product and Backorder. International Journal of
Production Research & Industrial Engineering, 22(1), 1-10.
Ray, S., Gerchak, Y., & Jewkes, E.M. (2005). Joint pricing and inventory policies for make-tostock
products with deterministic price-sensitive demand. International Journal of Production
Economics, 97(2), 143-158. http://dx.doi.org/10.1016/j.ijpe.2004.06.054
Rosenberg, D. (1991). Optimal price-inventory decisions: Profit vs. ROII. IIE transactions,
23(1), 17-22. http://dx.doi.org/10.1080/07408179108963837
Roy, A. (2008) An inventory model for deteriorating items with price dependent demand and
time varying holding cost. Advanced modeling and optimization, 10(1): 25-37.
Sajadieh, M.S., & Jokar, M.R.A. (2009). Optimizing shipment, ordering and pricing policies in a
two-stage supply chain with price sensitive demand. Transportation Research Part E, 45,
564-571. http://dx.doi.org/10.1016/j.tre.2008.12.002
Soon, W. (2011). A review of multi-product pricing models. Applied mathematics and
computation, 217(21), 8149-8165. http://dx.doi.org/10.1016/j.amc.2011.03.042
Whitin, T.M. (1955). Inventory control and price theory. Management Science, 2(1), 61-68.
http://dx.doi.org/10.1287/mnsc.2.1.61
Xiao, T., & Xu, T. (2013). Coordinating price and service level decisions for a supply chain with
deteriorating item under vendor managed inventory. International Journal of Production
Economics, 145(2), 743-752. http://dx.doi.org/10.1016/j.ijpe.2013.06.004
Yano, C.A., & Gilbert, S.M. (2005). Coordinated pricing and production/procurement decisions:
A review. Managing Business Interfaces, Springer, 65-103. http://dx.doi.org/10.1007/0-387-25002-
6_3

Thank you for copying data from http://www.arastirmax.com