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We consider a serial supply chain consisting of a supplier and a manufacturer, where production, inventory, transportation, backlogging and subcontracting decisions are integrated. A sequence of deterministic but non-stationary demands of the manufacturer for single good needs to be satisfied by the supplier over a finite horizon. In each period, the supplier can produce items by himself; also can...
Scarce supplies and overcapacity are the main characteristics of many industries in transition economies. This paper focuses on the motives, conditions and impacts of vertical integration under these characteristics. Based on the extension of Hart-Tirole model, we show scarce supplies create motivation for vertical integration, and the motivation is decreasing with the M&A cost. Eager bandwagon...
Available-to-promise (ATP) is a very important and critical supply chain management concept. Its purpose is to treat the actual and potential demands in a way for a company to obtain the largest possible profit. Optimization is a tool that can help in this subject and provides a reliable decision based on the availability of the production resources and the profitability of the products orders. Activity-based...
This paper presents three new inventory control models for perishable items in three-level supply chains using just-in-time logistics. The goal is to minimize the total cost of the whole supply chain. This includes cost of production, cost of freight, cost of preservation, cost of early or late delivery, and cost of perished goods. The first model, for the purpose of simplification, has been developed...
In this paper we analyze a scenario where a buyer procures capacity from one or more suppliers in the presence of demand uncertainty. The buyer does not have information of suppliers?? production cost function but assumes it is sampled from a known probability distribution. The supplier, of course, has knowledge of its own cost function but like the buyer does not have information on other suppliers??...
In the process of order fulfillment in build-to-order supply chain (BOSC), one of the most important problems in the corporations is how to improve the cost-effectiveness of BOSC while increase of customer satisfaction is achieved. Meanwhile, the explosion of e-business, especially the Internet-enabled supply chain mode, makes it more cost-effective for manufacturer and customers to interact with...
Just in time (abbreviate JIT) purchasing is an important approach to shorten the response time of supply chain efficiently and implement the agile operation of supply chain. The ideal JIT purchasing is such delivery which happened until the demand occurred for the supply of a small number and many time, requiring a high level of quality availability, and avoiding unnecessary wastage of the test. From...
This article mainly considers the profit distribution method in an upstream supply chain with manufacturer dominating, based on the balance of inventory cost and transportation cost. The profit distribution model is established to study three methods of profit distribution. The distribution coefficient lambda, which is specific and operative, can be got from the model solution. A numerical example...
In this paper, we consider a supply chain consisting of two independent agents, a manufacturer and a single supplier, the latter is the only source for a customized component. Two cases are considered. When the manufacturer has complete information on the production cost of the supplier, we offer cost-sharing contracts to coordinate the supply chain. Our analysis demonstrates that the manufacturer...
Based on the characteristics of complex product development, to deal with the optimal customization point problem of the different customization requirement, the architecture of supply chain model for complex products life cycle was proposed. According to the different position of the customer order decoupling point (CODP) in product life cycle, the architecture is divided into five supply chain types-development...
This paper studies a two-stage supply chain scheduling problem with n job orders where each job needs two sequential operations. In addition to the two in-house machines each for one operation, the manufacturer has another option of outsourcing some stage-one operations to an outside subcontractor. The jobs with their stage-one operation outsourced are subject to a single batch delivery from the subcontractor...
A mixed strategy which combines VMI and revenue sharing is put forward in this paper due to the problem of supply chain's hierarchy stock control strategy. A hierarchy and multi-cycle simulation model is constructed by multi-agent as well. The stock strategy of(S, Q), VMI, and VMI which is combined with revenue-sharing is carried out by discrete event simulation software EM-Plant. As the result, the...
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