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Supply Chain Coordination with Variable Backorder, Inspections, and Discount Policy for Fixed Lifetime Products

Title
Supply Chain Coordination with Variable Backorder, Inspections, and Discount Policy for Fixed Lifetime Products
Author
Biswajit Sarkar
Keywords
ECONOMIC-LOT-SIZE; VENDOR INVENTORY COORDINATION; TIME-VARYING DETERIORATION; QUANTITY DISCOUNTS; IMPERFECT QUALITY; EOQ MODEL; SYSTEM; PRICE; MANAGEMENT; PURCHASER
Issue Date
2016-01
Publisher
HINDAWI PUBLISHING CORP
Citation
MATHEMATICAL PROBLEMS IN ENGINEERING, v. 2016, Article no. 6318737
Abstract
This paper illustrates a channel coordination and quantity discounts between a vendor and a buyer with single-setupmulti-delivery (SSMD) strategy to reduce the joint total cost among supply chain players. The benefit of the coordination between a buyer and a vendor is considered as the vendor requests to the buyer for changing the ordering quantity such that the vendor can be benefited fromlower inventory costs. After accepting the buyer's condition, the vendor compensates the buyer for his increased inventory cost and gives consent for additional savings by offering a quantity discount. The centralized decision making is examined for the effect of this strategy with the presence of backorder for buyer and inspection cost for the vendor. The quantity discount strategy, with the presence of variable backorder and inspections, can allow more savings for all players of supply chain. Some numerical examples, sensitivity analysis, and graphical representations are given to illustrate more savings from existing literature and comparisons between the several demand values.
URI
https://www.hindawi.com/journals/mpe/2016/6318737/http://hdl.handle.net/20.500.11754/48735
ISSN
1024-123X; 1563-5147
DOI
10.1155/2016/6318737
Appears in Collections:
COLLEGE OF ENGINEERING SCIENCES[E](공학대학) > ETC
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