Quantity Discounts for Supply Chain Coordination

2005 ◽  
pp. 133-171 ◽  
Author(s):  
S. Chan Choi ◽  
Lei Lei ◽  
Qiang Wang
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Quantity Discounts

scholarly journals Supply Chain Coordination with Variable Backorder, Inspections, and Discount Policy for Fixed Lifetime Products

2016 ◽  
Vol 2016 ◽  
pp. 1-14 ◽  
Author(s):  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Channel Coordination ◽  
Quantity Discounts ◽  
Inventory Cost ◽  
Quantity Discount ◽  
Total Cost ◽  
Inspection Cost ◽  
Inventory Costs ◽  
Fixed Lifetime

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.

A three-echelon supply chain coordination with quantity discounts for multiple items

2010 ◽  
Vol 41 (5) ◽  
pp. 561-573 ◽  
Author(s):  
Ching-Ter Chang ◽  
Chei-Chang Chiou ◽  
Ya-Wen Yang ◽  
Shu-Chin Chang ◽  
Wanncherng Wang
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Quantity Discounts

scholarly journals The impact for retailer’s policy in supply chain system under trade credit and quantity discounts

2020 ◽  
Author(s):  
Tien-Yu Lin ◽  
Ying-Chun Li
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Optimal Solution ◽  
Chain Model ◽  
Quantity Discounts ◽  
Setup Cost ◽  
Supply Chain System ◽  
Coordination Systems ◽  
The Impact

This paper develops a powerful retailer inventory model under trade credit and quantity discounts in which the retailer’s order quantity is calculated for each setup and shipped in equal lots over multiple deliveries. Furthermore, the trade credit condition is that the retailer must make partial payments in cash for a given number of sub-shipments, with the remaining balance paid in trade credit time that expires after the inventory is depleted. This integrated powerful retailer supply chain model has not yet been discussed in previous supply chain coordination systems literature. We propose an annual total cost function and properties and develop theorems to illustrate that a unique optimal solution minimizes the relevant cost per year. We also develop an efficient algorithm to determine the optimal set of the replenishment time and the number of shipments. Numerical examples are provided to demonstrate the proposed model and algorithm. A sensitivity analysis is explored to examine the effects of four important parameters (i.e., setup cost, unit holding cost, interest rate, and receiving cost) on the optimal strategy. Finally, managerial insights are drawn

Supply Chain Coordination under Price Competition

2011 ◽  
pp. 226-248
Author(s):  
S.P. Sarmah ◽  
Santanu Sinha
Keyword(s):  
Supply Chain ◽  
Steady State ◽  
Price Competition ◽  
Supply Chain Coordination ◽  
The Other ◽  
Coordination Mechanism ◽  
Quantity Discounts ◽  
Numerical Examples ◽  
Retail Prices ◽  
Perfect Channel

This chapter analyzes the coordination and competition issues in a two-stage supply-chain in which a vendor distributes a product to two different retailers who compete on their retail prices in the same market. The demand faced by each retailer not only depends on its own price, but also on the price set by the other retailer. Mathematical models have been developed to analyze the coordination mechanism. It is shown here that perfect channel coordination can be achieved by employing simultaneously quantity discounts, volume discounts and franchise fees. Further, it has been shown that under non-cooperative price competition, the steady state equilibrium is dynamically stable in nature under certain conditions. The model is illustrated with suitable numerical examples.

Supply chain coordination under discrete information asymmetries and quantity discounts

Omega ◽  
2015 ◽  
Vol 53 ◽  
pp. 21-29 ◽  
Author(s):  
Dimitris Zissis ◽  
George Ioannou ◽  
Apostolos Burnetas
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Quantity Discounts ◽  
Information Asymmetries ◽  
Discrete Information

scholarly journals A System Dynamics Approach to Comparative Analysis of Biomass Supply Chain Coordination Strategies

Energies ◽  
2021 ◽  
Vol 14 (10) ◽  
pp. 2808
Author(s):  
Shohre Khoddami ◽  
Fereshteh Mafakheri ◽  
Yong Zeng
Keyword(s):  
Supply Chain ◽  
Comparative Analysis ◽  
System Dynamics ◽  
Electricity Generation ◽  
Supply Chain Coordination ◽  
Primary Source ◽  
Quantity Discounts ◽  
Remote Communities ◽  
Economy Of Scale ◽  
Coordination Strategies

Biomass is an abundant energy source, particularly in Canada, as an alternative or primary source for electricity generation. However, low economy of scale could cause a loss of efficiency for bioenergy adoption in small remote communities. In this sense, coordination among the players could promote the efficiency and profitability of bioenergy supply chains for these communities. There are different coordination strategies with varying impacts on supply chain players’ profit or cost. Therefore, analyzing and comparing them could provide insights on how to decide about the choice of coordination strategy. In doing so, this study considers the coordination strategies of quantity discounts and cost-sharing. The study adopts a system dynamics approach for simulating these coordination scenarios, obtaining their corresponding optimal supply chain decisions, followed by a comparative analysis. For a case study, the study considers multiple suppliers providing biomass for electricity generation in three communities in northern Quebec.

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