Abstract
Goods flowing through supply chains usually deteriorate. Such goods may corrupt, volatilize, and degenerate over time and thus cause the decline of their values or quantity. This study focuses on lead-time coordination for supply chains with deteriorating products which facilitates member cooperation and long-time relationships, thus increasing profit for the entire supply chain. A two-level supply chain with a single supplier and a single retailer is considered, in which the product deteriorates in the same manner for both the supplier and retailer, which is allowed to have shortages. A lead-time discount coordination strategy is used to maximize the profit of the entire supply chain by appropriately determining the optimal order quantity and lead-time. A numerical example is given, and sensitivity analyses are performed to analyze the influence of various parameters on the overall profit. The results can help managers establish long-term cooperative relationships in supply chains.
| Original language | English |
|---|---|
| Pages (from-to) | 358-366 |
| Number of pages | 9 |
| Journal | European Journal of Operational Research |
| Volume | 215 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 2011 Dec 1 |
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All Science Journal Classification (ASJC) codes
- Computer Science(all)
- Modelling and Simulation
- Management Science and Operations Research
- Information Systems and Management
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A study on lead-time discount coordination for deteriorating products. / Huang, Yeu-Shiang; Su, Wei Jun; Lin, Zu Liang.
In: European Journal of Operational Research, Vol. 215, No. 2, 01.12.2011, p. 358-366.Research output: Contribution to journal › Article
TY - JOUR
T1 - A study on lead-time discount coordination for deteriorating products
AU - Huang, Yeu-Shiang
AU - Su, Wei Jun
AU - Lin, Zu Liang
PY - 2011/12/1
Y1 - 2011/12/1
N2 - Goods flowing through supply chains usually deteriorate. Such goods may corrupt, volatilize, and degenerate over time and thus cause the decline of their values or quantity. This study focuses on lead-time coordination for supply chains with deteriorating products which facilitates member cooperation and long-time relationships, thus increasing profit for the entire supply chain. A two-level supply chain with a single supplier and a single retailer is considered, in which the product deteriorates in the same manner for both the supplier and retailer, which is allowed to have shortages. A lead-time discount coordination strategy is used to maximize the profit of the entire supply chain by appropriately determining the optimal order quantity and lead-time. A numerical example is given, and sensitivity analyses are performed to analyze the influence of various parameters on the overall profit. The results can help managers establish long-term cooperative relationships in supply chains.
AB - Goods flowing through supply chains usually deteriorate. Such goods may corrupt, volatilize, and degenerate over time and thus cause the decline of their values or quantity. This study focuses on lead-time coordination for supply chains with deteriorating products which facilitates member cooperation and long-time relationships, thus increasing profit for the entire supply chain. A two-level supply chain with a single supplier and a single retailer is considered, in which the product deteriorates in the same manner for both the supplier and retailer, which is allowed to have shortages. A lead-time discount coordination strategy is used to maximize the profit of the entire supply chain by appropriately determining the optimal order quantity and lead-time. A numerical example is given, and sensitivity analyses are performed to analyze the influence of various parameters on the overall profit. The results can help managers establish long-term cooperative relationships in supply chains.
UR - http://www.scopus.com/inward/record.url?scp=80051802394&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=80051802394&partnerID=8YFLogxK
U2 - 10.1016/j.ejor.2011.06.016
DO - 10.1016/j.ejor.2011.06.016
M3 - Article
VL - 215
SP - 358
EP - 366
JO - European Journal of Operational Research
JF - European Journal of Operational Research
SN - 0377-2217
IS - 2
ER -