An integrated vendor–buyer model with stock-dependent demand

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...

Full description

Saved in:
Bibliographic Details
Published in:Transportation research. Part E, Logistics and transportation review Logistics and transportation review, 2010-11, Vol.46 (6), p.963-974
Main Authors: Sajadieh, Mohsen S., Thorstenson, Anders, Jokar, Mohammad R. Akbari
Format: Article
Language:English
Subjects:
Batch production
Batch production Double marginalization Inventory Integrated vendor-buyer model Stock-dependent demand
Coordination
Customers
Demand
Double marginalization
Integrated vendor–buyer model
Inventory
Logistics
Marketing
Mathematical models
Numerical analysis
Profit maximization
Raw materials
Stock-dependent demand
Studies
Supply chain management
Supply chains
Transportation
Vendor supplier relations
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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.
ISSN:1366-5545
1878-5794
DOI:10.1016/j.tre.2010.01.007