IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v63y2012i12p1708-1719.html
   My bibliography  Save this article

Single-manufacturer, multi-retailer consignment policy for retailers’ generalized demand distributions

Author

Listed:
  • J Yu

    (Southern Methodist University, Dallas, USA)

  • B R Sarker

    (Louisiana State University, Baton Rouge, USA)

  • Q Duan

    (Louisiana State University, Baton Rouge, USA)

  • B Wu

    (Louisiana State University, Baton Rouge, USA)

Abstract

Consignment policy (CP) is a novel approach to the inventory management in supply chains. It is based on strong interaction and reliable collaboration between vendor(s) and buyer(s), which is acquiring growing importance in today's industrial reality. Unlike most literature focusing on single-vendor single-buyer models and deterministic customer demand, a single-manufacturer (vendor) multi-retailer (buyer) generic model is developed under stochastic customer demand in this study. In order to understand the potential benefits of CP, it is compared with a traditional policy (TP) model developed in the similar approach. The models are tested with two scenarios of uniform and exponential demand distributions of the retailers. The results show how CP works better than the traditional uncoordinated optimization. It not only helps the manufacturer to generate higher profit, but also coordinates retailers to achieve a higher supply chain profit. At the same time, each retailer earns at least as much as they do in TP. Further price discount sensitivity analysis demonstrates the efficiency of CP when facing price-demand fluctuation.

Suggested Citation

  • J Yu & B R Sarker & Q Duan & B Wu, 2012. "Single-manufacturer, multi-retailer consignment policy for retailers’ generalized demand distributions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 63(12), pages 1708-1719, December.
    • Handle: RePEc:pal:jorsoc:v:63:y:2012:i:12:p:1708-1719
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/jors/journal/v63/n12/pdf/jors201213a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/jors/journal/v63/n12/full/jors201213a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Buisman, Marjolein E. & Rohmer, Sonja U.K., 2022. "Inventory decisions for ameliorating products under consideration of stochastic demand," International Journal of Production Economics, Elsevier, vol. 252(C).
    2. Hariga, Moncer & As’ad, Rami & Khan, Zeinab, 2017. "Manufacturing-remanufacturing policies for a centralized two stage supply chain under consignment stock partnership," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 362-374.
    3. Po-Yu Chen, 2017. "Optimal Retail Price Model for Partial Consignment to Multiple Retailers," Complexity, Hindawi, vol. 2017, pages 1-11, December.
    4. Hossain, Md Shahriar J. & Ohaiba, Mohamed M. & Sarker, Bhaba R., 2017. "An optimal vendor-buyer cooperative policy under generalized lead-time distribution with penalty cost for delivery lateness," International Journal of Production Economics, Elsevier, vol. 188(C), pages 50-62.
    5. Jean Respen & Nicolas Zufferey & Philippe Wieser, 2017. "Three-level inventory deployment for a luxury watch company facing various perturbations," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(10), pages 1195-1210, October.
    6. Sarker, Bhaba R., 2014. "Consignment stocking policy models for supply chain systems: A critical review and comparative perspectives," International Journal of Production Economics, Elsevier, vol. 155(C), pages 52-67.
    7. Islam, S.M. Shahidul & Hoque, Md. Abdul & Hamzah, Norhayati, 2017. "Single-supplier single-manufacturer multi-retailer consignment policy for retailers’ generalized demand distributions," International Journal of Production Economics, Elsevier, vol. 184(C), pages 157-167.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:63:y:2012:i:12:p:1708-1719. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.