A Study on the Production Quantity - Delivery Lead Time Decision Model For a Two-stage Supply Chain of Seasonal Items

2007 ◽  
Author(s):  
Lin Yong ◽  
Chen Kai
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Decision Model ◽  
Two Stage ◽  
Production Quantity

scholarly journals Managing Distrust-Induced Risk with Deposit in Supply Chain Contract Decisions

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Guanghua Han ◽  
Ming Dong ◽  
Qi Sun
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Decision Process ◽  
Perceived Risk ◽  
Stackelberg Game ◽  
Two Stage ◽  
Supply Chain Contract ◽  
Second Stage ◽  
Production Quantity

This paper studies the trust issue in a two-echelon supply chain information sharing process. In a supply chain, the retailer reports the forecasted demand to the supplier. Traditionally, the supplier’s trust in the retailer’s reported information is based on the retailer’s reputation. However, this paper considers that trust is random and is also affected by the reputation and the demand gap. The supplier and retailer have been shown to have different evaluations regarding the degree of trust. Furthermore, distrust is inherently linked to perceived risk. To mitigate perceived risk, a two-stage decision process with an unpayback deposit contract is proposed. At the first stage, the supplier and the retailer negotiate the deposit contract. At the second stage, a Stackelberg game is used to determine the retailer’s reported demand and the supplier’s production quantity. We show that the deposits from the retailer’s and supplier’s perspectives are different. When the retailer’s reported demand is equal to the supplier’s forecasted demand, the retailer’s evaluation of the deposit is more than that of supplier’s. When the retailer’s reported demand is equal to the retailer’s forecasted demand, the deposit from the retailer’s perspective is at the lowest level.

scholarly journals Optimal Decisions and Financing Strategies Selection of Supply Chain with Capital Constraint

2016 ◽  
Vol 2016 ◽  
pp. 1-14 ◽  
Author(s):  
Bo Wang ◽  
De-Chun Huang ◽  
Hai-yan Li ◽  
Ji-Yong Ding
Keyword(s):  
Supply Chain ◽  
Decision Model ◽  
Numerical Study ◽  
Order Quantity ◽  
Optimal Production ◽  
Optimal Decisions ◽  
Financing Mode ◽  
Procurement Contract ◽  
Production Quantity ◽  
Selection Of

Two financing modes can be considered for manufacturer’s production capital constrained: RPFM (retailer’s prepayment financing mode) and PCFM (procurement contract financing mode). Under the RPFM, the retailer places order in advance for a discount price and makes prepayment; manufacturer is able to finance from a bank as production quantity cannot satisfy the second-order quantity of retailer. By contrast, manufacturers make financing from commercial banks based on the procurement contract with upstream supplier under the PCFM. Taking into account the relation between production volumes with the manufacturer’s own capital and retailer’s order quantity, the optimal production and financing decision model for manufacturer under these two financing modes are built. Moreover, the profits of the manufacturer, the retailer, and the supply chain are compared and discussed. Results show that both of the two modes can create new value and profit for the supply chain with capital constraint and achieve optimal production under “newsvendor” mode; the supply chain has the better performance under the RPFM than that achieved under the PCFM. Also, under the RPFM, the manufacturer’s production and the profit of the whole supply chain would be increased when the manufacturer makes the second financing. Similar conclusion is reached under the PCFM. Finally, numerical study was given to demonstrate the conclusions.

Push and pull contracts in a supply chain selling two products with different lead times

2018 ◽  
Vol 13 (4) ◽  
pp. 1007-1024
Author(s):  
Zhenyu Zhang ◽  
Zhiying Tao
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Lead Times ◽  
Single Product ◽  
Content Type ◽  
Multiple Products ◽  
Supply Chain Efficiency ◽  
Production Quantity ◽  
Short Lead Time ◽  
Push And Pull

Purpose Previous researchers have studied push and pull contracts in the single product scenario, although in practice, supply chains often produce and sell multiple products. In a multiproduct scenario, the sales of a product will be influenced by its complements or substitutes, which requires consideration when the supply chain members negotiate contracts. This paper aims to fill this gap by studying push and pull contracts in a supply chain which distributes two products to a market and discusses how the degree of complementarity/substitutability between the two products affects the supplier’s decisions and supply chain efficiency. Design/methodology/approach The paper uses the model of a single-supplier, single-retailer supply chain which sells a product with a long lead time and another product with a short lead time simultaneously in a market. This research compares the production quantity and supply chain efficiency under a push contract with those under a pull contract. Findings First, when the two products are complements, the equilibrium production quantity of Product 2 is higher under a pull contract than that under a push contract. Second, a pull contract is found to be optimal for both the supplier’s profit and supply chain efficiency when the two products are complements, while if they are substitutes, then a push contract is the better choice in some situations. Originality/value The existing literature discusses push and pull contracts in the single product scenario. The current paper pays attention to the two-product scenario and investigates how the complementarity/substitutability degree between the two products affects the supplier’s decisions and supply chain efficiency.

scholarly journals Optimal Decision for Fashion Supply Chains with Service Level Constraint and Controllable Lead Time

2015 ◽  
Vol 2015 ◽  
pp. 1-9 ◽  
Author(s):  
Guo Li ◽  
Yu-chen Kang ◽  
Guan Xu
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Exponential Distribution ◽  
Lead Time ◽  
Unit Cost ◽  
Service Level ◽  
Safety Factors ◽  
Controllable Lead Time ◽  
Production Quantity ◽  
Ordering Quantity

We study a two-echelon supply chain inventory model with controllable lead time and service level constraint in fashion supply chains, in which we assume that the unit cost of compressing lead time follows exponential distribution. Under these conditions we investigate the optimal ordering quantity and production quantity in the fashion supply chain by minimizing the joint total cost. Simultaneously, we work out the boundaries of ordering quantity and production quantity, which simplify the computation. Furthermore, numerical examples are presented to test the feasibility of the model. The results show that assuming the unit cost of compressing lead time in accordance with exponential distribution is realistic. It also notices that the optimal order and production decision for fashion supply chains are constrained obviously by the service level and safety factors. What is more, the holding cost rate of both the service level and safety factors has a certain influence on it. And by further analyzing on some references in the last part, we have done some extensions and found some interesting results.

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