Article ID: | iaor20082150 |
Country: | United Kingdom |
Volume: | 43 |
Issue: | 4 |
Start Page Number: | 338 |
End Page Number: | 354 |
Publication Date: | Jul 2007 |
Journal: | Transportation Research. Part E, Logistics and Transportation Review |
Authors: | Chen Jen-Ming, Chen Tsung-Hui |
Keywords: | optimization |
This study focused on an area of emerging research: managing a multi-product and multi-echelon supply chain which produces and sells deteriorating goods in the marketplace. We formulated four profit-maximization models by considering the effects of channel coordination and a joint replenishment program on the supply-side cost control, taking into account the effect of the pricing scheme on demand and revenue increments. In addition, a profit-sharing mechanism based on channel rebates is proposed, which leads to Pareto improvements among the channel participants.