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A Study On Decisions Of Premium Pricing And Crashing Cost Sharing Oriented To Shortening Delivery Time

Posted on:2008-09-29Degree:MasterType:Thesis
Country:ChinaCandidate:Y YanFull Text:PDF
GTID:2189360272967532Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
In the environment of intensifying competition recently, the development of technology and individual customers'requirement leads to the great change of competition pattern which makes speed to be the most powerful advantage in the competition market. With an increase of demand character in variability and time sensitive, supply chain firms are compelled to enhance their capability of quick response and inter-coordination. So in order to improve the competitive capability and increase the revenue for supply chain firms, it makes important theoretical value and actual significance to study the decision of delivery and coordination from the aspect of shortening delivery time.This thesis analyzed the relative issues about delivery time compression in supply chain. The techniques to shorten delivery time and the impact of delivery time compression were discussed, based on which two decision models oriented to shorten delivery time were built from different aspect. At first a premium-based model of lead time-contingent pricing was introduced with defining different estimated probabilities of requirement for lead time between customers and supply chain firms. It was under the assumption of time-sensitive demand with the objection of maximizing the expected profit. In the following the existence of the optimal solution was analyzed and the optimal decision-making strategies were advanced. The second model was based on a supply chain consists of a supplier and a retailer. After the introduction of decision model in which retailer takes charge of the delivery decision and delivery time crashing cost, a new model in which retailer decides order quantity after supplier declares delivery time and delivery time crashing cost are sharing in certain proportion by both of them was built to optimize the ordering cost in unit time. And then, the optimal decisions in two models has been analyzed and compared through analytical method and numerical example.
Keywords/Search Tags:Supply Chain, Time-based Competition, Delivery Time, Price premium, Crashing cost sharing
PDF Full Text Request
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