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Delivery performance improvement in two-stage supply chain

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  • Bushuev, Maxim A.

Abstract

This paper investigates strategies of supply chain delivery performance improvement. The performance is measured using a cost-based analytical model which evaluates the expected penalty cost for early and late delivery. The results demonstrate strategies for improving delivery performance when a supplier uses an optimally positioned delivery window to minimize the expected penalty cost. The effect of the width of the delivery window and penalty costs for early and late deliveries on the optimal position of the delivery window and the expected penalty cost are explored in general case. In addition to that, the effect of a mean and variance parameters of a normal delivery time distribution are revised. Theoretical and managerial implications of the findings are discussed.

Suggested Citation

  • Bushuev, Maxim A., 2018. "Delivery performance improvement in two-stage supply chain," International Journal of Production Economics, Elsevier, vol. 195(C), pages 66-73.
    • Handle: RePEc:eee:proeco:v:195:y:2018:i:c:p:66-73
    DOI: 10.1016/j.ijpe.2017.10.007
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    Cited by:

    1. Daniel Arturo Olivares Vera & Elias Olivares-Benitez & Eleazar Puente Rivera & Mónica López-Campos & Pablo A. Miranda, 2018. "Combined Use of Mathematical Optimization and Design of Experiments for the Maximization of Profit in a Four-Echelon Supply Chain," Complexity, Hindawi, vol. 2018, pages 1-25, April.
    2. Chand, Pushpendu & Thakkar, Jitesh J. & Ghosh, Kunal Kanti, 2020. "Analysis of supply chain performance metrics for Indian mining & earthmoving equipment manufacturing companies using hybrid MCDM model," Resources Policy, Elsevier, vol. 68(C).
    3. Omoruyi Osayuwamen, 2018. "Competitiveness Through the Integration of Logistics Activities in SMEs," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 63(3), pages 15-32, December.
    4. Tao, Liangyan & Liu, Sifeng & Xie, Naiming & Javed, Saad Ahmed, 2021. "Optimal position of supply chain delivery window with risk-averse suppliers: A CVaR optimization approach," International Journal of Production Economics, Elsevier, vol. 232(C).

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