Coordinated ordering decisions for products with short lifecyc1e and variable selling price

Coordinated ordering decisions for products with short lifecyc1e and variable selling price

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Article ID: iaor2009817
Country: Netherlands
Volume: 54
Issue: 3
Start Page Number: 602
End Page Number: 612
Publication Date: Apr 2008
Journal: Computers & Industrial Engineering
Authors: , , ,
Abstract:

The supplier–buyer coordination is an important policy in the supply chain management. The buyer in the two-echelon inventory system with regular selling season has to face the uncertainty of customer demand, supplier's delivery time and variable price change. At the same time, the supplier has to consider the inventory holding and delay cost. The objective of this study is to develop an integrated supply chain strategy for products with short lifecycle and variable selling price to entice cooperation. The strategy must provide a win–win situation for both the supplier and the buyer. A numerical case example, sensitivity analysis and compensation mechanism are given to illustrate the model.

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