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Optimizing supply chain collaboration based on joint replenishment and channel coordination

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  • Chen, Tsung-Hui
  • Chen, Jen-Ming

Abstract

This paper proposes a joint replenishment program coupled with a channel coordination practice, to investigate their effect on supply chain improvements. We formulated several supply chain models, with a manufacturer supplying a family of products to a retailer, and the products sharing a common production facility. The models illustrate the challenge of integrating multi-items with multi-echelon production and replenishment. In addition, a saving-sharing mechanism, through a quantity discount scheme, is proposed so that Pareto improvements (i.e., one party is better off and the other is no worse off) can be achieved among channel participants.

Suggested Citation

  • Chen, Tsung-Hui & Chen, Jen-Ming, 2005. "Optimizing supply chain collaboration based on joint replenishment and channel coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(4), pages 261-285, July.
    • Handle: RePEc:eee:transe:v:41:y:2005:i:4:p:261-285
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    Citations

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    Cited by:

    1. Faranak Emtehani & Nasim Nahavandi & Farimah Mokhatab Rafiei, 2021. "A joint inventory–finance model for coordinating a capital-constrained supply chain with financing limitations," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-39, December.
    2. Utama, Dana Marsetiya & Santoso, Imam & Hendrawan, Yusuf & Dania, Wike Agustin Prima, 2022. "Integrated procurement-production inventory model in supply chain: A systematic review," Operations Research Perspectives, Elsevier, vol. 9(C).
    3. Monalisha Pattnaik & Padmabati Gahan, 2021. "Preservation effort effects on retailers and manufacturers in integrated multi-deteriorating item discrete supply chain model," OPSEARCH, Springer;Operational Research Society of India, vol. 58(2), pages 276-329, June.
    4. Ke, Ginger Y. & Bookbinder, James H., 2012. "Discount pricing for a family of items: The supplier's optimal decisions," International Journal of Production Economics, Elsevier, vol. 135(1), pages 255-264.
    5. Tsao, Yu-Chung & Sheen, Gwo-Ji, 2012. "A multi-item supply chain with credit periods and weight freight cost discounts," International Journal of Production Economics, Elsevier, vol. 135(1), pages 106-115.
    6. Jorge E. Hernández & Andrew C. Lyons & Konstantinos Stamatopoulos, 2016. "A DSS-Based Framework for Enhancing Collaborative Web-Based Operations Management in Manufacturing SME Supply Chains," Group Decision and Negotiation, Springer, vol. 25(6), pages 1237-1259, November.
    7. Li, Jin & Yang, Shilei & Shi, Victor & Zhai, Senjing, 2020. "Partial vertical centralization in competing supply chains," International Journal of Production Economics, Elsevier, vol. 224(C).
    8. Du, Ruo & Banerjee, Avijit & Kim, Seung-Lae, 2013. "Coordination of two-echelon supply chains using wholesale price discount and credit option," International Journal of Production Economics, Elsevier, vol. 143(2), pages 327-334.
    9. Glock, Christoph H., 2012. "The joint economic lot size problem: A review," International Journal of Production Economics, Elsevier, vol. 135(2), pages 671-686.
    10. Chan, Chi Kin & Fang, Fei & Langevin, André, 2018. "Single-vendor multi-buyer supply chain coordination with stochastic demand," International Journal of Production Economics, Elsevier, vol. 206(C), pages 110-133.
    11. Graça, Paula & Camarinha-Matos, Luís M., 2017. "Performance indicators for collaborative business ecosystems — Literature review and trends," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 237-255.
    12. Flapper, Simme Douwe P. & González-Velarde, José Luis & Smith, Neale R. & Escobar-Saldívar, Luis Jacob, 2010. "On the optimal product assortment: Comparing product and customer based strategies," International Journal of Production Economics, Elsevier, vol. 125(1), pages 167-172, May.
    13. Zhou, Yong-Wu, 2009. "Two-echelon supply chain coordination through the unified number of annual orders," International Journal of Production Economics, Elsevier, vol. 117(1), pages 162-173, January.
    14. Lin, Chinho & Lin, Yihsu, 2007. "A cooperative inventory policy with deteriorating items for a two-echelon model," European Journal of Operational Research, Elsevier, vol. 178(1), pages 92-111, April.
    15. Arshinder & Kanda, Arun & Deshmukh, S.G., 2008. "Supply chain coordination: Perspectives, empirical studies and research directions," International Journal of Production Economics, Elsevier, vol. 115(2), pages 316-335, October.
    16. Jonrinaldi, & Zhang, D.Z., 2013. "An integrated production and inventory model for a whole manufacturing supply chain involving reverse logistics with finite horizon period," Omega, Elsevier, vol. 41(3), pages 598-620.

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