On Creating Mutual-beneficial Replenishment Strategies in Supply Chains using Price Discounts and Budget Constraints Coordination Mechanisms

• Main Authors: Chuang-Chun Chiou, 邱創鈞
• Other Authors: Jenteng Tsai
• Format: Others
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/54054589187322009645

博士 === 東海大學 === 工業工程與經營資訊學系 === 92 === Recently, both the practitioners and academic researchers have been highly interested in proposing efficient inventory replenishment strategies to conduct coordination between the firms so as to improve the performance of the whole supply chain system. When the supplier and the retailers derive their replenishment strategies independently, it could lead to the cases that an optimal solution for the supplier is unacceptable to the retailers, or vise versa. Also, both parties could lose opportunities for further cost reduction if they ignore channel coordination. Therefore, we propose new coordination mechanisms to create mutually beneficial scenarios for supply chain systems with one supplier and multiple retailers in this study. In such mutually beneficial scenarios, we propose that the supplier use price-discounts to compensate the buyers’ cost increase as they follow the replenishment schedule designated by the supplier. Also, we consider that the maximum cost that the buyer is prepared to incur cannot exceed the buyers’ budget. Therefore, in the proposed scenarios, not only the supplier can obtain cost reduction through the coordinated replenishment strategy, each buyer can also have an opportunity to share the cost-savings from the supplier. This study contributes to the following aspects. First, we improve the efficiency of the solution procedures for the existing models with coordination mechanisms. Second, we extend the existing models to incorporate the proposed savings-sharing mechanism to create mutual-beneficial scenarios in the supply chain. Third, we investigate the theoretical properties of the proposed models and catch many managerial insights into the mutual-beneficial scenarios. Fourth, with the numerical experiments, we demonstrate the feasibility of bringing cost savings to the supplier as well the buyers in the supply chain with the proposed models.