Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Coordination Under Price Protection, Mid/End Life Returns, and Quantity Discount for a Three-Level Supply Chain

가격보호 정책, 반품 정책과 물량할인 정책을 사용한 3단계 공급사슬의 협력방안

  • Published : 2005.09.01
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Abstract

The coordination of a three-level supply chain consisting of a supplier, a retailer, and a discount outlet (DCO) is studied here. We assume that the product is sold in two consecutive periods a Normal Sales Period (NSP) and a subsequent Clearance Salvage Period (CSP). A benchmark case is studied Initially in which the supply chain is coordinated by a s1n91e agent. Thus, the supplier the retailer, and the discount outlet design a common system that allows centralized decision making about stocking quantities, markdown time schedules, and policies on disposing of leftovers to deliver the greatest possible expected supply chain profit. Next, we consider a decentralized supply chain. Here, decisions are made without coordination. The objective is to maximize an individual party's expected profits. The focus of the study is on the following questions: what factors make the coordination an effective approach for the supply chain? How do we coordinate the supply chain so as to maximize the supply chain Joint expected profit? These and other related study issues are explored in this paper.

Keywords

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