A Supply Chain Inventory Coordination Policy

With development of technology and economy, supply chain management becomes more and more essential to enterprises and researcher. Studying the theory and methods of inventory coordination in supply chain is very significant. This paper mainly deals with the policies of the ordering and pricing in two-level supply chain, and studies how the cooperation and competition among the members of supply chain have an effect on the ordering, pricing, each benefit and total benefit of the system for different demand characteristics, different production-distribution system, different marketing setting and so on. This paper makes further extensive study on the traditional inventory coordination models from different aspects. The details are given as bellows.1. Two Extensions for inventory coordination models with constant demand rates in two-echelon supply chain.(1). An integrated vendor -managed - inventory model for two-echelon system with ordering cost reduction. In order to get a higher degree of coordination and automation among the supply chain parties, the supply chain sometimes invest in reducing the ordering cost to streamline and speedup transactions via the application of information technologies. In this paper, an integrated vendor -managed - inventory model is studied for the system where a single vendor purchases and processes raw materials in order to deliver finished items to multiple buyers. We incorporate the ordering cost reduction investment decisions into consideration and develop a joint relevant cost model. The model is analyzed to derive a solution procedure for the optimal investment amount and replenishment policy for all the buyers and the vendor.(2). The policy about the production and complementarity with limit term warranty product in two-level supply chain. In this text, we consider a system where a single manufacturer produce and deliver a finished item...