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Vendor managed inventory with a capacitated manufacturer and multiple retailers: Retailer versus manufacturer leadership

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  • Almehdawe, Eman
  • Mantin, Benny

Abstract

Considering a supply chain composed of a single capacitated manufacturer and multiple retailers, we model a Stackelberg game vendor managed inventory framework under two scenarios: in the first, we follow the traditional approach wherein the manufacturer is the leader; in the second, we let one of the retailers act as the dominant player of the supply chain. Is retailer dominance a preferred outcome by all retailers? Can the supply chain efficiency be improved by having the dominance gravitated from the manufacturer to one of the retailers? Solving the corresponding MINLP problems, we provide some insights using numerical examples.

Suggested Citation

  • Almehdawe, Eman & Mantin, Benny, 2010. "Vendor managed inventory with a capacitated manufacturer and multiple retailers: Retailer versus manufacturer leadership," International Journal of Production Economics, Elsevier, vol. 128(1), pages 292-302, November.
  • Handle: RePEc:eee:proeco:v:128:y:2010:i:1:p:292-302
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    References listed on IDEAS

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    1. repec:spr:annopr:v:242:y:2016:i:2:d:10.1007_s10479-014-1541-6 is not listed on IDEAS
    2. Lee, Jun-Yeon & Cho, Richard K., 2014. "Contracting for vendor-managed inventory with consignment stock and stockout-cost sharing," International Journal of Production Economics, Elsevier, vol. 151(C), pages 158-173.
    3. Lee, Jun-Yeon & Ren, Louie, 2011. "Vendor-managed inventory in a global environment with exchange rate uncertainty," International Journal of Production Economics, Elsevier, vol. 130(2), pages 169-174, April.
    4. Hariga, Moncer & Gumus, Mehmet & Daghfous, Abdelkader, 2014. "Storage constrained vendor managed inventory models with unequal shipment frequencies," Omega, Elsevier, vol. 48(C), pages 94-106.
    5. Zhang, Rong & Liu, Bin & Wang, Wenliang, 2012. "Pricing decisions in a dual channels system with different power structures," Economic Modelling, Elsevier, vol. 29(2), pages 523-533.
    6. Hoque, M.A., 2011. "An optimal solution technique to the single-vendor multi-buyer integrated inventory supply chain by incorporating some realistic factors," European Journal of Operational Research, Elsevier, vol. 215(1), pages 80-88, November.
    7. Wu, Cheng-Han & Chen, Chieh-Wan & Hsieh, Chung-Chi, 2012. "Competitive pricing decisions in a two-echelon supply chain with horizontal and vertical competition," International Journal of Production Economics, Elsevier, vol. 135(1), pages 265-274.
    8. repec:spr:annopr:v:244:y:2016:i:2:d:10.1007_s10479-015-1982-6 is not listed on IDEAS

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