×

zbMATH — the first resource for mathematics

Supply chain coordination for a deteriorating item with stock and price-dependent demand under revenue sharing contract. (English) Zbl 1277.90008
Summary: This paper deals with an integrated single-manufacturer single-retailer supply chain model for a single item. The market demand is assumed to be dependent on both the on-hand stock and price, and the manufacturer and the retailer are in an agreement of lot-for-lot policy. The proposed model is developed under the contract that the retailer offers the manufacturer a percentage of revenue (s)he generates by selling a lot. We determine optimal policies for both the centralized and decentralized coordination systems. A comparison of these policies is made with a numerical example. Sensitivity analysis is performed to examine the stability of the solution.

MSC:
90B05 Inventory, storage, reservoirs
90B06 Transportation, logistics and supply chain management
PDF BibTeX XML Cite
Full Text: DOI
References:
[1] Abad, Supplier pricing and lot-sizing when demand is price sensitive, European Journal of Operational Research 78 pp 334– (1994) · Zbl 0816.90045
[2] Banerjee, A joint economic lot size model for purchaser and vendor, Decision Science 17 (2) pp 292– (1986)
[3] Cachon, Supply chain coordination with revenue-sharing contracts: strengths and limitations, Management Science 51 (1) pp 30– (2005) · Zbl 1232.90173
[4] Chakravarty, Operational economics of a process positioning determinant, Computers and Operational Research 18 pp 515– (1991) · Zbl 0741.90027
[5] Chauhan, Analysis of a supply chain partnership with revenue sharing, International Journal of Production Economics 29 (9) pp 45– (2004)
[6] Chen, Coordination mechanism for the supply chain with lead time consideration and price-dependent demand, European Journal of Operational Research 203 pp 70– (2010) · Zbl 1176.90082
[7] Dana, Revenue sharing and vertical control in the video rental industry, Journal of Industrial Economics 49 (3) pp 223– (2005)
[8] Ghare, A model for exponentially decaying inventories, Journal of Industrial Engineering 15 pp 238– (1963)
[9] Giannoccaro, Supply chain coordination by revenue-sharing contracts, International Journal of Production Economics 89 (2) pp 131– (2004)
[10] Goyal, An integrated inventory model for single-supplier single-customer problem, International Journal of Production Research 15 pp 107– (1976)
[11] Goyal, A joint economic lot size model for purchaser and vendor: a comment, Decision Science 19 pp 236– (1988)
[12] Goyal, On improving the single-vendor single-buyer integrated production inventory model with a generalized policy, European Journal of Operational Research 125 (2) pp 429– (2000) · Zbl 0971.90002
[13] Goyal, Recent trends in modeling of deteriorating inventory, European Journal of Operational Research 134 pp 1– (2001) · Zbl 0978.90004
[14] Hill, The single-vendor single-buyer integrated production-inventory model with a generalized policy, European Journal of Operational Research 97 (3) pp 493– (1997) · Zbl 0919.90053
[15] Hill, The optimal production and shipment policy for the single-vendor single-buyer integrated production-inventory problem, International Journal of Production Research 37 (11) pp 2463– (1999) · Zbl 0949.90567
[16] Levin, Production/Operations Management: Contemporary Policy for Managing Operating Systems (1972)
[17] Li, Supply chain coordination with quantity discount policy, International Journal of Production Economics 101 pp 89– (2006)
[18] Lu, A one-vendor multi-buyer integrated inventory model, European Journal of Operational Research 81 (2) pp 312– (1995) · Zbl 0927.90005
[19] Monahan, A quantity discount pricing model to increase vendor profits, Management Science 30 pp 720– (1984)
[20] Nahmias, Perishable inventory theory: a review, Operations Research 30 pp 680– (1982) · Zbl 0486.90033
[21] Parlar, Discounting decisions in a supplier-buyer relationship with a linear buyer’s demand, IIE Transactions 26 pp 34– (1994)
[22] Qin, Channel coordination and volume discounts with price-sensitive demand, International Journal of Production Economics 105 pp 43– (2007)
[23] Rau, Integrated inventory model for deteriorating items under a multi-echelon supply chain environment, International Journal of Production Economics 86 pp 155– (2003)
[24] Rhee, A new revenue sharing mechanism for coordinating multi-echelon supply chains, Operations Research Letters 38 pp 296– (2010) · Zbl 1193.90047
[25] Silver , E.A. Peterson , R. 1985 Decision Systems for Inventory Management and Production Planning John Wiley, New York
[26] Weng, Channel coordination and quantity discounts, Management Science 41 pp 1509– (1995) · Zbl 0861.90067
[27] Weng, General models for the supplier’s all-unit quantity discount policy, Naval Research Logistics 40 pp 971– (1993) · Zbl 0800.90117
[28] Yong, Revenue-sharing contract of supply chain with price sensitive end-customer demand, Chinese Journal of Management Science 13 (6) pp 29– (2005)
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.