Supply chain inventory co-ordination through multiple, common replenishment epochs and selective discount

Supply chain inventory co-ordination through multiple, common replenishment epochs and selective discount

0.00 Avg rating0 Votes
Article ID: iaor20043430
Country: United Kingdom
Volume: 7
Issue: 2
Start Page Number: 109
End Page Number: 118
Publication Date: Jun 2004
Journal: International Journal of Logistics
Authors: ,
Keywords: supply chain
Abstract:

We consider the problem of co-ordinating supply chain inventories through the use of multiple common replenishment epochs (MCREs), or time periods. A single-vendor, multiple-buyer supply chain for a single product is considered, where the vendor specifies two alternative common replenishment epochs. Buyers who replenish at integer multiples of one of the two common replenishment epochs receive a discount. Buyers do so if the discount is sufficient enough to make the switch from their optimal replenishment scheme economical. Our study shows that this voluntary MCRE strategy can enhance the vendor's profit considerably, compared with strategies that have previously been proposed.

Reviews

Required fields are marked *. Your email address will not be published.