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Research on Supplier Collaboration of Daily Consumer Goods under Uncertainty of Supply and Demand

Author

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  • Tianwen Song

    (Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China)

  • Qiang Zhang

    (Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China)

  • Junmu Ran

    (Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China)

  • Wenxue Ran

    (Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China)

Abstract

This paper establishes the decentralized decision-making model of consumer goods, the active collaboration model of consumer goods suppliers, and the decentralized decision-making model of customized consumer goods. Through formula derivation and simulation, the benefit and influence differences of the three modes are compared. This paper studies the influence of supplier’s active collaboration on the supply and demand instability of consumer goods and discusses the ideal value of supply chain inventory control. In China’s modern circular economy, the inventory control of the consumer goods supply chain is unscientific and nonstandard. We discuss a new inventory control method and study the ideal value of supply chain inventory control. It helps reduce the inventory shortage loss caused by the uncertainty of daily consumer goods, improve the efficiency of the supply chain, enhance the liquidity of supply chain inventory to achieve the purpose of increasing economic value. It has reference value for the inventory control of consumer goods in other countries and regions. The results show that under certain conditions, the horizontal collaboration between suppliers can improve the completeness of consumer goods. The collaboration between suppliers can reduce the hidden dangers caused by the uncertainty of supply and demand and significantly reduce the total inventory cost of manufacturers and improve profits.

Suggested Citation

  • Tianwen Song & Qiang Zhang & Junmu Ran & Wenxue Ran, 2021. "Research on Supplier Collaboration of Daily Consumer Goods under Uncertainty of Supply and Demand," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:10:p:5683-:d:557556
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    References listed on IDEAS

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    Cited by:

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    2. Khouja, Moutaz & Hammami, Ramzi, 2023. "Building viable stockpiles of personnel protective equipment," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1206-1224.

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