scholarly journals Two-Echelon Supply Chain Model with Demand Dependent On Price, Promotional Effort and Service Level in Crisp and Fuzzy Environments

2020 ◽  
pp. 317-329
Author(s):  
Sahidul Islam ◽  
Sayan Chandra Deb
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Fuzzy Model ◽  
Optimal Strategies ◽  
Service Level ◽  
Chain Model ◽  
Selling Price ◽  
Promotional Effort ◽  
Supply Chain Model ◽  
Cost Parameters

This article explores a supply chain model consisting of a single manufacturer and two competing retailers. The manufacturer, as a Stackelberg leader specifies a wholesale price and bears servicing costs of the products. Then, both the retailers advertise the products and sell them to the customers. So, the demand of the products is influenced by selling price, service level and also promotional effort. On the basis of this gaming structure, two mathematical models have been formed - crisp model, where each member of the chain exactly knows all the cost parameters and fuzzy model where those cost parameters are considered as fuzzy numbers. Optimal strategies for the manufacturer and the retailers are determined and some numerical examples have been given. Finally, how perturbations of parameters affect the profits of the chain members have been determined.

Supply Chain Model with Two Storage Facility for Stock Dependent Demand Incorporating Learning and Inflationary Effect under Crisp and Fuzzy Environment

2017 ◽  
Vol 6 (2) ◽  
pp. 82-109 ◽  
Author(s):  
Chaman Singh ◽  
Shiv R. Singh
Keyword(s):  
Supply Chain ◽  
Inventory Level ◽  
Chain Model ◽  
Selling Price ◽  
Purchasing Cost ◽  
Supply Chain Model ◽  
Stock Dependent Demand ◽  
Demand Rate ◽  
Cost Parameters ◽  
Dependent Demand

In this paper, a supply chain model with power form stock-dependent demand rate is developed, incorporating the effect of learning and inflationary environment. In order to bring their research closer to reality, all the cost parameters involved in the model are considered fuzzy in nature. The demand rate is assumed to be a polynomial form of current inventory level in Own-warehouse. To display the items, retailer has one warehouse of finite capacity, treated as own warehouse (OW) and may hire another warehouse of large capacity, treated as rented warehouse (RW) to storage the excess inventory. Learning effect is incorporated on retailer's selling price, purchasing cost, part of holding cost, deterioration cost and ordering cost. Proposed model is illustrated with some numerical example along with sensitivity analysis of parameters.

Coordination and competition in two-echelon supply chain using grey revenue-sharing contracts

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayad Hendalianpour ◽  
Mohammad Hamzehlou ◽  
Mohammad Reza Feylizadeh ◽  
Naiming Xie ◽  
Mohammad Hossein Shakerizadeh
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
High Performance ◽  
Wholesale Price ◽  
Revenue Sharing ◽  
Chain Model ◽  
Selling Price ◽  
Quantity Discount ◽  
Content Type ◽  
Supply Chain Model

PurposeThis study examines the potential of contracts as one of the supply chain coordination mechanisms under competitive conditions. It also investigates a two-echelon supply chain model with two manufacturers and two retailers to develop a competitive structure in grey stochastic demand.Design/methodology/approachSupply chain demand is considered as a stochastic phenomenon depending on the selling price of the product. Also, products can be replaced by market manufacturers. Each retailer faces the pricing of products from two manufacturers, leading to competition between downstream retailers. In the present study, the duopoly supply chain model was presented based on the wholesale price contract, revenue-sharing contract and quantity discount contract separately.FindingsGrey optimization and analysis of their coordination were presented. The results showed the high performance of revenue-sharing contracts in the supply chain. Thus, manufacturers will give the next priority to quantity discount contracts.Originality/valueOrdering is the main factor contributing to competitive decision-making. Meanwhile, decision-making along with ordering and pricing will be required due to the nature of the demand.

scholarly journals Optimal Pricing and Ordering Policy for Two Echelon Varying Production Inventory System

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Brojeswar Pal ◽  
Shib Sankar Sana ◽  
Kripasindhu Chaudhuri
Keyword(s):  
Supply Chain ◽  
Raw Materials ◽  
Chain Model ◽  
Selling Price ◽  
Lot Size ◽  
Ordering Policy ◽  
Supply Chain Model ◽  
Production Inventory ◽  
Test Feasibility ◽  
Optimal Ordering

The paper proposes a two-stage supply chain model for price sensitive demand in imperfect production system while manufacturer and supplier are the members of the chain. The supplier screens the raw materials first and supplies good materials to the manufacturer at a constant rate. The production rate varies randomly within a finite interval. The inventory cycle of the manufacturer starts with shortages and production and it finishes with shortages again, in which shortages are partially backlogged. We consider a mixture of LIFO (last in, first out) and FIFO (first in, first out) dispatching policies to fill the backlogged demand. Thus, the objective of the proposed paper is to determine the optimal ordering lot-size and selling price of the manufacturer such that the per unit average integrated expected profit of the supply chain model is maximized. A numerical example is provided to analyze and illustrate the behavior and application of the model. Finally, sensitivity analysis of the key parameters are presented to test feasibility of the model.

The Effect of Risk Sensitivity on Collaborative New Product Development in a Supply Chain

2010 ◽  
Vol 450 ◽  
pp. 381-384
Author(s):  
Yu Zhou ◽  
Rong Yao He
Keyword(s):  
Supply Chain ◽  
Product Development ◽  
New Product Development ◽  
Wholesale Price ◽  
Profit Maximization ◽  
Optimal Strategies ◽  
New Product ◽  
Product Management ◽  
Chain Model ◽  
Risk Sensitivity

The increasing risks and costs of new product development require firms to collaborate with their supply chain partners in product management. In this paper, a supply chain model is proposed with one risk-neutral supplier and one risk-averse manufacturer. The manufacturer has an opportunity to enhance demand by developing a new product, but both the actual demand for new product and the supplier’s wholesale price are uncertain. The supplier has an incentive to share risks of new product development via an advance commitment to wholesale price for its own profit maximization. The effects of the manufacturer’s risk sensitivity on the players’ optimal strategies are analyzed and the trade-off between innovation incentives and pricing flexibility is investigated from the perspective of the supplier. The results highlight the significant role of risk sensitivity in collaborative new product development, and it is found that the manufacturer’s innovation level and retail price are always decreasing in the risk sensitivity, and the supplier prefers commitment to wholesale price only when the risk sensitivity is below a certain threshold.

The effect of full or partial pricing integration on supply chain management

2019 ◽  
Vol 53 (5) ◽  
pp. 1807-1817
Author(s):  
Neng-Hui Shih ◽  
Ming-Hung Shu ◽  
Chih-Hsiung Wang
Keyword(s):  
Supply Chain ◽  
Cost Model ◽  
Service Level ◽  
Chain Model ◽  
Control Cost ◽  
Integration Model ◽  
Optimal Service ◽  
Supply Chain Model ◽  
Optimal Pricing Strategy ◽  
Total Profit

A previous paper proposed a supply chain model, comprised of a retailer and manufacturer, in which the manufacturer uses product pricing to maximize the profit of the entire supply chain. The increased profits gained from integration are then shared among all the supply chain members. The optimal pricing strategy was shown to be “products on consignment” for sale. The present study extends this simple two-layer supply chain model to a more complicated three-layer model, in which the supply chain comprises not only the retailer and manufacturer, but also an intermediate distributor. In contrast to the previous model, the present model not only considers the role of the distributor, but also the effects of product nonconformance at each facility in the supply chain. The profit function of each facility in the supply chain is established, including the sales revenue, procurement cost, and quality control cost. The investment cost at the retailer to improve the service level is also considered. It is shown that the total profit of the supply chain is maximized when the retailer’s optimal service level is adopted, where this service level is adjusted in accordance with the distributor’s unit sale price. Furthermore, after price integration, the overall profit of the supply chain is found to equal the retailer’s profit. In other words, the total profit of the manufacturer and distributor is equal to zero. Numerical examples are given to illustrate the proposed pricing integration model under different quality environments. The results are contrasted with those obtained using a traditional pricing model, namely the “make up on cost’’ model. Overall, the present results show that the manufacturer is always the winner under partial price integration (i.e., only the retailer and distributor join the integration). Furthermore, partial integration is far less profitable for the retailer and distributor than full integration.

scholarly journals An Integrated Supplier-Buyer Inventory Model with Conditionally Free Shipment under Permissible Delay in Payments

2010 ◽  
Vol 2010 ◽  
pp. 1-20 ◽  
Author(s):  
Chia-Hsien Su
Keyword(s):  
Supply Chain ◽  
Production Rate ◽  
Production Cost ◽  
Positive Impact ◽  
Wholesale Price ◽  
Chain Model ◽  
Selling Price ◽  
Market Demand ◽  
Unit Production Cost ◽  
Minimum Requirement

It is well known that production, distribution, marketing, inventory control, and financing all/each have a positive impact on the performance of a supply chain. Despite the growing interest in the development of integrated inventory models, the interactions between these elements of a supply chain may not be efficiently included, resulting in a restricted supply chain model presentation. To incorporate this phenomenon, a mathematical model that tackles the interdependent relationships between these aforementioned elements is developed in this paper. This study considers the determination of the optimal pricing, ordering, and delivery policies of a profit-maximizing supply chain system, faced with (1) unit wholesale price of the supplier is set based on unit production cost, (2) unit production cost is taken as a function of demand rate and production rate, (3) the supplier's production rate is adjusted according to market demand, (4) market demand depends upon buyer's selling price, (5) a free freight is offered if the buyer's order exceeds a certain minimum requirement, and (6) a constant credit period is offered by the supplier to stimulate the demand of the buyer. Algorithm for computing the optimal policies is derived. The sensitivity of the optimal results with respect to those parameters which directly influence the production and transportation costs is also examined.

scholarly journals A supply chain model with service level constraints and strategies under uncertainty

2021 ◽  
Vol 60 (6) ◽  
pp. 6035-6052
Author(s):  
Shaktipada Bhuniya ◽  
Sarla Pareek ◽  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Service Level ◽  
Chain Model ◽  
Supply Chain Model
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