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An integrated vendor-buyer model with stock-dependent demand

Sajadieh, M. S ; Sharif University of Technology | 2010

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  1. Type of Document: Article
  2. DOI: 10.1016/j.tre.2010.01.007
  3. Publisher: 2010
  4. Abstract:
  5. We develop an integrated vendor-buyer model for a two-stage supply chain. The vendor manufactures the product and delivers it in a number of equal-sized batches to the buyer. The items delivered are presented to the end customers in a display area. Demand is assumed to be positively dependent on the amount of items displayed. The objective is to maximize total supply chain profit. The numerical analysis shows that buyer-vendor coordination is more profitable in situations when demand is more stock dependent. It also shows that the effect of double marginalization provides a link between the non-coordinated and the coordinated case
  6. Keywords:
  7. Batch production ; Double marginalization ; Integrated vendor-buyer model ; Stock-dependent demand ; Demand analysis ; Industrial production ; Inventory ; numerical model ; Profitability
  8. Source: Transportation Research Part E: Logistics and Transportation Review ; Volume 46, Issue 6 , November , 2010 , Pages 963-974 ; 13665545 (ISSN)
  9. URL: http://www.sciencedirect.com/science/article/pii/S1366554510000189