Coordinating Supply Chains With a General Price-Dependent Demand Function: Impacts of Channel Leadership and Information Asymmetry

2016 ◽  
Vol 63 (4) ◽  
pp. 390-403 ◽  
Author(s):  
Chun-Hung Chiu ◽  
Tsan-Ming Choi ◽  
Xun Li ◽  
Cedric Ka-Fai Yiu
Keyword(s):  
Supply Chains ◽  
Information Asymmetry ◽  
Demand Function ◽  
Dependent Demand

scholarly journals Information Asymmetry in Supply Chain Coordination: State of the Art

2020 ◽  
pp. 38-43
Author(s):  
Mohammadali Vosooghidizaji ◽  
◽  
Atour Taghipour ◽  
Béatrice Canel-Depitre
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Literature Review ◽  
Supply Chains ◽  
Information Asymmetry ◽  
State Of The Art ◽  
Supply Chain Coordination ◽  
Coordination State ◽  
Strategic Information ◽  
Comprehensive Literature Review

Supply chains consist of several actors from supplier, manufacturer, distributer, wholesaler and retailers connected to each other by financial, material and informational flows. Optimal performance of supply chains requires set of actions that coordinate the members’ decisions [1], [2]. In many cases, members are trying to optimize their own objectives which can lead to asymmetric information by keeping some strategic information private. Although, this information asymmetry is a challenge affecting the coordination of supply chain, but it is achievable if proper set of coordinating mechanism executed. This paper presents a comprehensive literature review of supply chain coordination under asymmetric information and tries to analyze the trend in the context and address the evolution and gaps in existing literature.

Time and Price Dependent Demand with Varying Holding Cost Inventory Model for Deteriorating Items

2013 ◽  
Vol 4 (4) ◽  
pp. 75-95 ◽  
Author(s):  
Diwakar Shukla ◽  
Uttam Kumar Khedlekar ◽  
Raghovendra Pratap Singh Chandel
Keyword(s):  
Simulation Study ◽  
Demand Function ◽  
Inventory Model ◽  
Time Parameter ◽  
Suggested Model ◽  
Open Problems ◽  
Holding Cost ◽  
Theoretical Results ◽  
Dependent Demand ◽  
Better Than

This paper presents an inventory model considering the demand as a parametric dependent linear function of time and price both. The coefficient of time-parameter and coefficient of price-parameter are examined simultaneously and proved that time is dominating variable over price in terms of earning more profit. It is also proved that deterioration of item in the inventory is one of the most sensitive parameter to look into besides many others. The robustness of the suggested model is examined using variations in the input parameters and ranges are specified on which the model is robust on most of occasions and profit is optimal. Two kinds of doubly-demand function strategies are examined and mutually compared in view of the two different cases. Second strategy found better than first. Holding cost is treated as a variable. Theoretical results are supported by numerical based simulation study with robustness. Some recommendations are given at the end for the inventory managers and also open problems are discussed for researchers. This model is more realistic than considered by earlier author.

scholarly journals Evaluation of Stock Management Strategies Reliability at Dependent Demand

2017 ◽  
Vol 18 (1) ◽  
pp. 60-69 ◽  
Author(s):  
Valery Lukinskiy ◽  
Vladislav Lukinskiy
Keyword(s):  
Supply Chains ◽  
Inventory Management ◽  
Management Strategies ◽  
Stock Management ◽  
Significant Progress ◽  
Safety Stock ◽  
The Core ◽  
Methodical Approach ◽  
Reducing Costs ◽  
Dependent Demand

Abstract For efficiently increasing the logistic systems, the core specialists’ attention has to be directed to reducing costs and increasing supply chains reliability. A decent attention to costs reduction has already been paid, so it can be stated that in this way there is a significant progress. But the problem of reliability evaluation is still insufficiently explored, particularly, in such an important sphere as inventory management at the dependent demand. In the article there is a suggested methodical approach that allows calculating the safety stock quantity at the dependent demand in view of supply chains reliability requirements; the variants for different inventory management strategies at the dependent demand are examined; optimal strategy choice algorithm and results of total costs calculation in view of the reliability are given.

Evolving a bi-objective optimization model for an after sales supply chain in presence of information asymmetry and service level requirement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohit Goswami ◽  
Yash Daultani ◽  
Atul Tripathi
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Information Asymmetry ◽  
Objective Function ◽  
Optimization Model ◽  
Information Quality ◽  
Mathematical Structure ◽  
Service Level ◽  
Problem Instance ◽  
Content Type

PurposeOptimization of resources related to man, money, manpower and those related to organization is critical in context of after-sales supply chains. Many times, organizational objectives in terms of resource optimization and providing superior customer experience might be conflicting, however.Design/methodology/approachOne such instance is when customers expect near 100% service level in which case the organizational costs to meet such high service level goes up significantly. To this end, in this research a novel bi-objective optimization model has been evolved for a typical after-sales service supply chain network constituted of the manufacturer, the retailer and the customer. The first objective function pertains to maximization of the manufacturer's and the retailer's profit. The second objective function is related to the minimization of tardiness of order fulfilment (by the retailer) for the customer.FindingsEmploying a small problem instance, the authors generate a number of findings related to service level and information asymmetry. In particular, the authors observe that achieving best possible manufacturer-retailer profit and at the same time 100% service level is a mathematical impossibility. Furthermore, reducing information asymmetry between the customer and the retailer (as opposed to reducing information asymmetry between the retailer and the manufacturer) actually yields higher profits for the manufacturer-retailer pair.Originality/valueThis research describes the mathematical structure of a three-tier after-sales supply chain wherein information quality and service level requirements are key constraints. Furthermore, the study evolves the bi-objective optimization model as a formulation that can drive the operational decisions of manufacturers and retailers who are part of such after-sales service supply chains.

Farm Level Demand for Pecans Reconsidered

1986 ◽  
Vol 18 (1) ◽  
pp. 157-160 ◽  
Author(s):  
Gary J. Wells ◽  
Stephen E. Miller ◽  
C. Stassen Thompson
Keyword(s):  
Time Series ◽  
Demand Function ◽  
Proxy Variable ◽  
Farm Level ◽  
Adequate Measure ◽  
Dependent Demand

AbstractPrevious studies have consistently indicated the anomalous result of a price inflexible demand for pecans. However, these efforts did not have an adequate measure of pecan stocks available and, as a result, stocks were either excluded from consideration or a proxy variable was introduced. A time series of pecan stocks is now available. Use of this time series in a price dependent demand function results in a flexible farm level demand for pecans. This points out the danger of excluding an appropriate variable or using a so-called “reasonable” proxy variable.

Dominance Relationship Among the Retailer’s Strategies Under the Semi-Stackelberg Newsvendor Situation with Quantity Discounts

2016 ◽  
Vol 33 (02) ◽  
pp. 1650014
Author(s):  
Youkyung Won
Keyword(s):  
Probability Distribution ◽  
Demand Function ◽  
Dominant Strategy ◽  
Optimal Order ◽  
Quantity Discounts ◽  
Order Quantity ◽  
Dominance Relationship ◽  
Optimal Order Quantity ◽  
Dependent Demand ◽  
Stackelberg Leader

In this paper, we investigate the retailer’s behavior under the supplier-driven semi-Stackelberg newsvendor situation in which (i) the supplier plays as a semi-Stackelberg leader with or without his discounts schedule being offered to the retailer, (ii) the retailer plays as a Stackelberg follower with or without her discounts schedule being offered to the end customer, and (iii) neither party has perfect information on the endogenous price-dependent demand function or exogenous probability distribution of demand. In this situation, the retailer’s concern is identifying the dominant strategy by which she can safely implement her own scheme for customer discounts regardless of the order quantity rather than finding the best strategy yielding the optimal order quantity that maximizes her expected profit. We show that a consistent dominance relationship exists among the retailer’s strategies when the newsvendor chooses to offer progressive multiple discounts to customers regardless of the supplier’s strategy of offering the retailer either all-units discounts or no-discounts.

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