Service design of replenishment policy based on joint decision of cooperation in supply chain

In replenishment policies of cycle review and continuous review, the service design of cycle service level based on joint decision of cost sharing is studied, and two processes of service design system are proposed: a improve forward service design is proposed to optimize cycle service level in a cycle review policy for durable product; and a joint strategy between economic order quantity (EOQ) and cycle service level (CSL) is proposed to achieve quick response in a continuous review policy of "multi batches-lower lot size". Optimization of replenishment policies is also analyzed for typical items as perishable and durable product, based on these service design systems. The conclusion is that, optimal service level based on joint decision of cooperation and cost sharing, keeps higher and stable during most period of the sales season, which increases the level of customer satisfaction and product availability. The supply chain achieves both higher service level and harmonious coordination through the cooperation mechanism of the service design systems.