Article ID: | iaor2006695 |
Country: | United Kingdom |
Volume: | 41 |
Issue: | 4 |
Start Page Number: | 261 |
End Page Number: | 285 |
Publication Date: | Jul 2005 |
Journal: | Transportation Research. Part E, Logistics and Transportation Review |
Authors: | Chen Jen-Ming, Chen Tsung-Hei |
Keywords: | inventory, optimization |
This paper proposes a joint replenishment program coupled with a channel coordination practice, to investigate their effect on supply chain improvements. We formulated several supply chain models, with a manufacturer supplying a family of products to a retailer, and the products sharing a common production facility. The models illustrate the challenge of integrating multi-items with multi-echelon production and replenishment. In addition, a saving-sharing mechanism, through a quantity discount scheme, is proposed so that Pareto improvements (i.e., one party is better off and the other is no worse off) can be achieved among channel participants.