This paper addresses the problem of handling the uncertainty of demand in a one-supplier-one-retailer supply chain system. Demand variation often makes the real production different from what is originally planned, ca...This paper addresses the problem of handling the uncertainty of demand in a one-supplier-one-retailer supply chain system. Demand variation often makes the real production different from what is originally planned, causing a deviation cost from the production plan. Assume the market demand is sensitive to the retail price in a nonlinear form, we show how to effectively handle the demand uncertainty in a supply chain, both for the case of centralized-decision-making system and the case of decentralized-decision-making system with perfect coordination.展开更多
The coordination problem of a supply chain comprising one supplier and one retailer under market demand disruption is studied in this article. A novel exponential demand function is adopted, and the penalty cost is in...The coordination problem of a supply chain comprising one supplier and one retailer under market demand disruption is studied in this article. A novel exponential demand function is adopted, and the penalty cost is introduced explicitly to capture the deviation production cost caused by the market demand disruption. The optimal strategies are obtained for different disruption scale under the centralized mode. For the decentralized mode, it is proved that the supply chain can be fully coordinated by adjusting the price discount policy appropriately when disruption occurs. Furthermore, the authors point out that similar results can be established for more general demand functions that represent different market circumstances if certain assumptions are satisfied.展开更多
文摘This paper addresses the problem of handling the uncertainty of demand in a one-supplier-one-retailer supply chain system. Demand variation often makes the real production different from what is originally planned, causing a deviation cost from the production plan. Assume the market demand is sensitive to the retail price in a nonlinear form, we show how to effectively handle the demand uncertainty in a supply chain, both for the case of centralized-decision-making system and the case of decentralized-decision-making system with perfect coordination.
基金This research was supported by National Science Foundation of China (60274048)
文摘The coordination problem of a supply chain comprising one supplier and one retailer under market demand disruption is studied in this article. A novel exponential demand function is adopted, and the penalty cost is introduced explicitly to capture the deviation production cost caused by the market demand disruption. The optimal strategies are obtained for different disruption scale under the centralized mode. For the decentralized mode, it is proved that the supply chain can be fully coordinated by adjusting the price discount policy appropriately when disruption occurs. Furthermore, the authors point out that similar results can be established for more general demand functions that represent different market circumstances if certain assumptions are satisfied.
