Lead time decisions under lead-time sensitive demand with demand disruptions

Ching Pin Lin, Chung-Chi Hsieh

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

This paper studies a two-party supply chain in which a retailer orders a short-life-cycle product from a supplier. The supplier establishes a production plan using a market forecast and determines his wholesale price. And then the retailer decides the order quantities and sells the product to the customers and declares a quoted lead time L at the retail price p. When the selling period begins, demand may disrupt. To cope with such demand disruption, the supplier may alter his wholesale price, which in turn influences the retailer's order quantity, the quoted lead time and the retail price. Our objective is to explore supply chain coordination via quantity discount in the presence of demand change, and to derive conditions under which the supply chain is coordinated to achieve maximum profit. A numerical example is given that illustrates the supply chain members' decisions in the absence and in the presence of demand change.

Original languageEnglish
Title of host publicationProceedings of the 2009 6th International Conference on Service Systems and Service Management, ICSSSM '09
Pages552-557
Number of pages6
DOIs
Publication statusPublished - 2009 Nov 16
Event2009 6th International Conference on Service Systems and Service Management, ICSSSM '09 - Xiamen, China
Duration: 2009 Jun 82009 Jun 10

Publication series

NameProceedings of the 2009 6th International Conference on Service Systems and Service Management, ICSSSM '09

Other

Other2009 6th International Conference on Service Systems and Service Management, ICSSSM '09
CountryChina
CityXiamen
Period09-06-0809-06-10

All Science Journal Classification (ASJC) codes

  • Information Systems
  • Information Systems and Management

Fingerprint Dive into the research topics of 'Lead time decisions under lead-time sensitive demand with demand disruptions'. Together they form a unique fingerprint.

  • Cite this

    Lin, C. P., & Hsieh, C-C. (2009). Lead time decisions under lead-time sensitive demand with demand disruptions. In Proceedings of the 2009 6th International Conference on Service Systems and Service Management, ICSSSM '09 (pp. 552-557). [5174945] (Proceedings of the 2009 6th International Conference on Service Systems and Service Management, ICSSSM '09). https://doi.org/10.1109/ICSSSM.2009.5174945