Optimal quantity discount coordination for supply chain optimization with one manufacturer and multiple suppliers under demand uncertainty

We consider a two-level supply chain for a perishable product with stock dependent demand, and study the supply chain coordination issues with quantity discount contract under both symmetric and asymmetric information. We design an optimal quantity discount contract for the vendor, and show that the quantity discount contract can coordinate the supply chain under symmetric information. However, the vendor is not able to realize supply chain coordination with only quantity discount contract if the buyer's holding cost is private information since the buyer may keep this information private for bargaining a higher price discount. Nevertheless, quantity discount contract is still beneficial to the vendor as compared to the case without quantity discount. Numerical experiments are conducted to demonstrate the theoretical results.

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211 Supply Chain Optimization under Demand Uncertainty Incorporating Contract Decision with Suppliers

The Proceedings of Manufacturing Systems Division Conference ◽

10.1299/jsmemsd.2011.73 ◽

2011 ◽

Vol 2011 (0) ◽

pp. 73-74

Author(s):

Sisi Yin ◽

Tatsushi Nishi

Keyword(s):

Supply Chain ◽

Demand Uncertainty ◽

Supply Chain Optimization

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303 Quantity Discount Supply Chain Planning Model under Demand Uncertainty

The Proceedings of Manufacturing Systems Division Conference ◽

10.1299/jsmemsd.2010.41 ◽

2010 ◽

Vol 2010 (0) ◽

pp. 41-42

Author(s):

Sisi Yin ◽

Tatsushi Nishi

Keyword(s):

Supply Chain ◽

Demand Uncertainty ◽

Planning Model ◽

Supply Chain Planning ◽

Quantity Discount

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Design of optimal quantity discounts for multi-period bilevel production planning under uncertain demands

Advances in Mechanical Engineering ◽

10.1177/1687814020902321 ◽

2020 ◽

Vol 12 (2) ◽

pp. 168781402090232

Author(s):

Okihiro Yoshida ◽

Tatsushi Nishi ◽

Guoqing Zhang ◽

Jun Wu

Keyword(s):

Supply Chain ◽

Production Planning ◽

Demand Uncertainty ◽

Optimal Solution ◽

Stackelberg Equilibrium ◽

Quantity Discounts ◽

Planning Models ◽

Proposed Model ◽

Production Quantity ◽

Optimal Quantity

The analysis of the quantity discount of the decentralized supply chain has been studied only for single-period planning models. This article presents the design of an optimal quantity discounts for multi-period bilevel production planning for two-echelon supply chains under demand uncertainty. In order to derive an optimal contract for multi-period production planning, the cumulative order quantity and production quantity are introduced. From our proposed model, a Stackelberg equilibrium is analytically derived for the supply chain when the supplier is the leader and the retailer is the follower. An optimal discount contract is analytically designed through the optimal solution of the centralized problem. Computational results show the effectiveness of the proposed discount contract under demand uncertainty.

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Fashion Supply Chain Optimization: A Linear Programming Model

10.31224/osf.io/m8qvc ◽

2022 ◽

Author(s):

Sara Shoarinejad ◽

Amin Shoari Nejad

Keyword(s):

Supply Chain ◽

Demand Uncertainty ◽

Programming Model ◽

Complex Structure ◽

Global Competition ◽

Supply Chain Optimization ◽

Fashion Brand ◽

Emerging Trends ◽

Short Product ◽

Algebraic Modelling

Fashion supply chain management is challenging due to demand uncertainty, short product life, fierce global competition, and increasing expectations such as product diversity and keeping pace with the current and emerging trends. In this paper, a brief review of the published works in the field of fashion and clothing supply chain is given and an integrated linear model is presented to minimize a fashion brand’s costs, including production and logistics costs, enabling the firm to make better decisions with regard to its production and replenishment policies and responding in a reasonable time to customers demands for various designed items. We show that our model can successfully account for complex structure of the supply chain consisting of designer, manufacturers, distributors, and stores. The model is validated using the General Algebraic Modelling System (GAMS) with the data collected from an Iranian fashion brand.

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