Coordinating orders in supply chains through price discounts

被引：31

作者：

Klastorin, T.D. ^{[1
]}

Moinzadeh, Kamran ^{[1
]}

Son, Joong ^{[2
]}

机构：

[1] Department of Management Science, School of Business Administration, University of Washington, Seattle, WA 98195-3200, United States

[2] A. Gary Anderson Graduate School of Management, University of California at Riverside, Riverside, CA 92521, United States

来源：

IIE Transactions (Institute of Industrial Engineers) | 2002年 / 34卷 / 08期

关键词：

Cost effectiveness - Inventory control - Mathematical models - Outsourcing - Strategic planning;

D O I：

10.1023/A:1014968426093

中图分类号：

学科分类号：

摘要：

In this paper, we examine the issue of order coordination between a supplier and multiple retailers in a decentralized multi-echelon inventory/distribution system where the supplier provides a product to multiple retailers who experience static demand and standard inventory costs. Specifically, we propose and analyze a new policy where a manufacturer, who outsources production to an Original Equipment Manufacturer, offers a price discount to retailers when they coordinate the timing of their orders with the manufacturer's order cycle. We show that our proposed policy can lead to more efficient supply chains under certain conditions, and present a straightforward method for finding the manufacturer's optimal price discount in this decentralized supply chain. A numerical experiment illustrates the managerial implications of our model as well as conditions when a manufacturer should consider adopting such a policy.

引用

页码：679 / 689