Supply Chain Coordination Under Demand Uncertainty: Analysis of General Continuous Quantity Discounts

2014 ◽  
pp. 287-292
Author(s):  
Hamid Mashreghi ◽  
Mohammad Reza Amin-Naseri
Keyword(s):  
Supply Chain ◽  
Uncertainty Analysis ◽  
Demand Uncertainty ◽  
Supply Chain Coordination ◽  
Quantity Discounts ◽  
Continuous Quantity

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.

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