International Journal of Supply Chain Management
Vol 3, No 3 (2014): International Journal of Supply Chain Management (IJSCM)

Supply Chain Coordination with Quantity Discount for Seasonal Demand

Mikhail M Sher (Unknown)
Seung-Lae Kim (Professor of Operations Management Decision Sciences Department LeBow College of Business Drexel University)



Article Info

Publish Date
29 Sep 2014

Abstract

Coordination between manufacturers and multiple buyers represents an important problem in supply chain management. In this paper, we develop a supply chain coordination mechanism in a system with a dominant manufacturer that delivers seasonal products to a group of buyers. These buyers have common replenishment times and receive delivery through a common delivery channel. A twice-stage ordering and production system is introduced in which the first order is placed at some time in advance of the selling season and a second order is placed closer to the selling period. This reorder strategy allows the buyer to collect additional information about seasonal demand, thereby reducing demand forecast error and simultaneously smoothing out production time. This twice-stage model results in savings for both manufacturer and the buyers. Strategies for developing sustainable cooperation between manufacturers and buyers are discussed in light of the conclusions of this model.

Copyrights © 2014






Journal Info

Abbrev

IJSCM

Publisher

Subject

Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

Description

International Journal of Supply Chain Management (IJSCM) is a peer-reviewed indexed journal, ISSN: 2050-7399 (Online), 2051-3771 (Print), that publishes original, high quality, supply chain management empirical research that will have a significant impact on SCM theory and practice. Manuscripts ...