An integrated vendor-buyer model with stock-dependent demand
AbstractWe develop an integrated vendor-buyer model for a two-stage supply chain. The vendor manufactures the product and delivers it in a number of equal-sized batches to the buyer. The items delivered are presented to the end customers in a display area. Demand is assumed to be positively dependent on the amount of items displayed. The objective is to maximize total supply chain profit. The numerical analysis shows that buyer-vendor coordination is more profitable in situations when demand is more stock dependent. It also shows that the effect of double marginalization provides a link between the non-coordinated and the coordinated case.
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Bibliographic InfoArticle provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.
Volume (Year): 46 (2010)
Issue (Month): 6 (November)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description
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- Glock, Christoph H., 2012. "The joint economic lot size problem: A review," International Journal of Production Economics, Elsevier, vol. 135(2), pages 671-686.
- Sana, Shib Sankar, 2012. "A collaborating inventory model in a supply chain," Economic Modelling, Elsevier, vol. 29(5), pages 2016-2023.
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