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Vendor managed inventory with a capacitated manufacturer and multiple retailers: Retailer versus manufacturer leadership

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  • Almehdawe, Eman
  • Mantin, Benny

Abstract

Considering a supply chain composed of a single capacitated manufacturer and multiple retailers, we model a Stackelberg game vendor managed inventory framework under two scenarios: in the first, we follow the traditional approach wherein the manufacturer is the leader; in the second, we let one of the retailers act as the dominant player of the supply chain. Is retailer dominance a preferred outcome by all retailers? Can the supply chain efficiency be improved by having the dominance gravitated from the manufacturer to one of the retailers? Solving the corresponding MINLP problems, we provide some insights using numerical examples.

Suggested Citation

  • Almehdawe, Eman & Mantin, Benny, 2010. "Vendor managed inventory with a capacitated manufacturer and multiple retailers: Retailer versus manufacturer leadership," International Journal of Production Economics, Elsevier, vol. 128(1), pages 292-302, November.
    • Handle: RePEc:eee:proeco:v:128:y:2010:i:1:p:292-302
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    References listed on IDEAS

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    3. Manojit Das & Dipak Kumar Jana & Shariful Alam, 2022. "Game theoretic analysis of a three-stage interconnected forward and reverse supply chain," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 7976-8007, June.
    4. Lee, Jun-Yeon & Ren, Louie, 2011. "Vendor-managed inventory in a global environment with exchange rate uncertainty," International Journal of Production Economics, Elsevier, vol. 130(2), pages 169-174, April.
    5. Changhong Li & Jialuo Wang & Yifan Shi, 2022. "The Impact of Government Intervention and Cap-and-Trade on Green Innovation in Supply Chains: A Social Welfare Perspective," Sustainability, MDPI, vol. 14(13), pages 1-18, June.
    6. Bai, Qingguo & Gong, Yeming (Yale) & Jin, Mingzhou & Xu, Xianhao, 2019. "Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory," International Journal of Production Economics, Elsevier, vol. 208(C), pages 83-99.
    7. Choi, Tsan-Ming & Li, Yongjian & Xu, Lei, 2013. "Channel leadership, performance and coordination in closed loop supply chains," International Journal of Production Economics, Elsevier, vol. 146(1), pages 371-380.
    8. Hariga, Moncer & Gumus, Mehmet & Daghfous, Abdelkader, 2014. "Storage constrained vendor managed inventory models with unequal shipment frequencies," Omega, Elsevier, vol. 48(C), pages 94-106.
    9. Zhang, Rong & Liu, Bin & Wang, Wenliang, 2012. "Pricing decisions in a dual channels system with different power structures," Economic Modelling, Elsevier, vol. 29(2), pages 523-533.
    10. Hoque, M.A., 2011. "An optimal solution technique to the single-vendor multi-buyer integrated inventory supply chain by incorporating some realistic factors," European Journal of Operational Research, Elsevier, vol. 215(1), pages 80-88, November.
    11. Wu, Cheng-Han & Chen, Chieh-Wan & Hsieh, Chung-Chi, 2012. "Competitive pricing decisions in a two-echelon supply chain with horizontal and vertical competition," International Journal of Production Economics, Elsevier, vol. 135(1), pages 265-274.
    12. Nawel Amrouche & Ruiliang Yan, 2016. "A manufacturer distribution issue: how to manage an online and a traditional retailer," Annals of Operations Research, Springer, vol. 244(2), pages 257-294, September.
    13. Zhang, Shichen & Zhang, Jianxiong & Zhu, Guowei, 2019. "Retail service investing: An anti-encroachment strategy in a retailer-led supply chain," Omega, Elsevier, vol. 84(C), pages 212-231.

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