Research On Supply Cooperative Ordering And Late-delivery Compensation Policy

Based on the use of supply chain management theory on the ordering, this paper discussed the cooperated ordering policy about the upstream of the supply chain. In the research on ordering, most of them aim at the downstream of the supply chain; discuss the ordering between the manufacturer and the wholesaler. Only several papers pay attention on the upstream of the supply chain. They do their research from the view of main manufacturer; discuss how to get the coordination of supply chain. And seldom do their work from the idea of supply-driven. The profit increase of the whole supply chain was studied in those papers but omit how to get a proper revenue sharing. In fact, many problems are from lack of cooperation of the supplier. So how to inspire the supplier is very important. And this paper is based on the problem discuss the ordering policy between supplier and manufacture.This study bases on the new supply chain management idea ----supply-driven. In this paper we consider a single ordering period with uncertain demand and supply lead time, discuss the ordering strategy between a supplier and a manufacturer. It gives an ordering model. Mathematical analysis and numerical study prove the advantage of this supplier-led ordering model. In this paper, we also take into account the profit distribution problem and use a revenue compensation parameter in the ordering model. And discuss the revenue of the two parties when this parameter changes. The result shows that the"rule of financial equivalent performance"that Weng used in his study has its limitation in this ordering model.