IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v135y2005i1p87-10910.1007-s10479-005-6236-6.html
   My bibliography  Save this article

Coordination of a Supply Chain with One-Manufacturer and Two-Retailers Under Demand Promotion and Disruption Management Decisions

Author

Listed:
  • Tiaojun Xiao
  • Gang Yu
  • Zhaohan Sheng
  • Yusen Xia

Abstract

Increasingly, customer service, rapid response to customer requirements, and flexibility to handle uncertainties in both demand and supply are becoming strategic differentiators in the marketplace. Organizations that want to achieve these benchmarks require sophisticated approaches to conduct order promising and fulfillment, especially in today’s high-mix low-volume production environment. Motivated by these challenges, the Available-to-Promise (ATP) function has migrated from a set of availability records in a Master Production Schedule (MPS) toward an advanced real-time decision support system to enhance decision responsiveness and quality in Assembly To Order (ATO) or Configuration To Order (CTO) environments. Advanced ATP models and systems must directly link customer orders with various forms of available resources, including both material and production capacity. In this paper, we describe a set of enhancements carried out to adapt previously published mixed-integer-programming (MIP) models to the specific requirements posed by an electronic product supply chain within Toshiba Corporation. This model can provide individual order delivery quantities and due dates, together with production schedules, for a batch of customer orders that arrive within a predefined batching interval. The model considers multi-resource availability including manufacturing orders, production capability and production capacity. In addition, the model also takes into account a variety of realistic order promising issues such as order splitting, model decomposition and resource expediting and de-expediting. We conclude this paper with comparison of our model execution results vs. actual historical performance of systems currently in place. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Tiaojun Xiao & Gang Yu & Zhaohan Sheng & Yusen Xia, 2005. "Coordination of a Supply Chain with One-Manufacturer and Two-Retailers Under Demand Promotion and Disruption Management Decisions," Annals of Operations Research, Springer, vol. 135(1), pages 87-109, March.
    • Handle: RePEc:spr:annopr:v:135:y:2005:i:1:p:87-109:10.1007/s10479-005-6236-6
    DOI: 10.1007/s10479-005-6236-6
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10479-005-6236-6
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10479-005-6236-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    2. Yunzeng Wang & Yigal Gerchak, 2001. "Supply Chain Coordination when Demand Is Shelf-Space Dependent," Manufacturing & Service Operations Management, INFORMS, vol. 3(1), pages 82-87, August.
    3. Andy A. Tsay & Narendra Agrawal, 2000. "Channel Dynamics Under Price and Service Competition," Manufacturing & Service Operations Management, INFORMS, vol. 2(4), pages 372-391, August.
    4. Ganesh Iyer, 1998. "Coordinating Channels Under Price and Nonprice Competition," Marketing Science, INFORMS, vol. 17(4), pages 338-355.
    5. Charles J. Corbett & Gregory A. DeCroix, 2001. "Shared-Savings Contracts for Indirect Materials in Supply Chains: Channel Profits and Environmental Impacts," Management Science, INFORMS, vol. 47(7), pages 881-893, July.
    6. Perry, Martin K. & Porter, Robert H., 1990. "Can resale price maintenance and franchise fees correct sub-optimal levels of retail service?," International Journal of Industrial Organization, Elsevier, vol. 8(1), pages 115-141.
    7. Andy A. Tsay, 1999. "The Quantity Flexibility Contract and Supplier-Customer Incentives," Management Science, INFORMS, vol. 45(10), pages 1339-1358, October.
    8. Ugarte, Armando & Oren, Shmuel, 2000. "Coordination of internal supply chains in vertically integrated high-tech manufacturing organizations (HTMOs)," International Journal of Production Economics, Elsevier, vol. 67(3), pages 235-252, October.
    9. Gérard P. Cachon & Martin A. Lariviere, 1999. "Capacity Choice and Allocation: Strategic Behavior and Supply Chain Performance," Management Science, INFORMS, vol. 45(8), pages 1091-1108, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Desheng Wu, 2011. "Joint pricing-servicing decision and channel strategies in the supply chain," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(1), pages 99-137, March.
    2. Canan Savaskan & Charles J. Corbett, 2001. "Contracting and Coordination in Closed-Loop Supply Chains," Discussion Papers 1327, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    3. Devangan, Lokendra & Amit, R.K. & Mehta, Peeyush & Swami, Sanjeev & Shanker, Kripa, 2013. "Individually rational buyback contracts with inventory level dependent demand," International Journal of Production Economics, Elsevier, vol. 142(2), pages 381-387.
    4. Xia, Yusen & Gilbert, Stephen M., 2007. "Strategic interactions between channel structure and demand enhancing services," European Journal of Operational Research, Elsevier, vol. 181(1), pages 252-265, August.
    5. Wang, Charles X. & Qian, Zhuang & Zhao, Yabing, 2018. "Impact of manufacturer and retailer's market pricing power on customer satisfaction incentives in supply chains," International Journal of Production Economics, Elsevier, vol. 205(C), pages 98-112.
    6. Iida, Tetsuo, 2012. "Coordination of cooperative cost-reduction efforts in a supply chain partnership," European Journal of Operational Research, Elsevier, vol. 222(2), pages 180-190.
    7. Ghosh, Debabrata & Shah, Janat, 2015. "Supply chain analysis under green sensitive consumer demand and cost sharing contract," International Journal of Production Economics, Elsevier, vol. 164(C), pages 319-329.
    8. Xiao, Tiaojun & Yang, Danqin, 2009. "Risk sharing and information revelation mechanism of a one-manufacturer and one-retailer supply chain facing an integrated competitor," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1076-1085, August.
    9. Stephen M. Gilbert & Gang Yu & Yusen Xia, 2007. "The strategic effects of a merger upon supplier interactions," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(2), pages 162-175, March.
    10. Albert Y. Ha, 2001. "Supplier‐buyer contracting: Asymmetric cost information and cutoff level policy for buyer participation," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(1), pages 41-64, February.
    11. Tongil “TI”Kim, 2021. "When Franchisee Service Affects Demand: An Application to the Car Radiator Market and Resale Price Maintenance," Marketing Science, INFORMS, vol. 40(1), pages 101-121, January.
    12. Haresh Gurnani & Yi Xu, 2006. "Resale price maintenance contracts with retailer sales effort: Effect of flexibility and competition," Naval Research Logistics (NRL), John Wiley & Sons, vol. 53(5), pages 448-463, August.
    13. Cai, W. & Singham, D.I., 2018. "A principal–agent problem with heterogeneous demand distributions for a carbon capture and storage system," European Journal of Operational Research, Elsevier, vol. 264(1), pages 239-256.
    14. Harish Krishnan & Roman Kapuscinski & David A. Butz, 2004. "Coordinating Contracts for Decentralized Supply Chains with Retailer Promotional Effort," Management Science, INFORMS, vol. 50(1), pages 48-63, January.
    15. Yao, Dong-Qing & Liu, John J., 2005. "Competitive pricing of mixed retail and e-tail distribution channels," Omega, Elsevier, vol. 33(3), pages 235-247, June.
    16. İsmail Bakal & Nesim Erkip & Refik Güllü, 2011. "Value of supplier’s capacity information in a two-echelon supply chain," Annals of Operations Research, Springer, vol. 191(1), pages 115-135, November.
    17. Zhou, Yong-Wu & Min, Jie & Goyal, Suresh K., 2008. "Supply-chain coordination under an inventory-level-dependent demand rate," International Journal of Production Economics, Elsevier, vol. 113(2), pages 518-527, June.
    18. Qin, Xuelian & Liu, Zhixue & Tian, Lin, 2021. "The optimal combination between selling mode and logistics service strategy in an e-commerce market," European Journal of Operational Research, Elsevier, vol. 289(2), pages 639-651.
    19. Li, Bai-Xun & Zhou, Yong-Wu & Li, Ji-zi & Zhou, Shi-ping, 2013. "Contract choice game of supply chain competition at both manufacturer and retailer levels," International Journal of Production Economics, Elsevier, vol. 143(1), pages 188-197.
    20. Arpita Roy & Shib Sankar Sana & Kripasindhu Chaudhuri, 2018. "Optimal Pricing of competing retailers under uncertain demand-a two layer supply chain model," Annals of Operations Research, Springer, vol. 260(1), pages 481-500, January.

    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:spr:annopr:v:135:y:2005:i:1:p:87-109:10.1007/s10479-005-6236-6. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.springer.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.