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Study On Coordination Mechanism Of Supply Chain Under VMI With Inventory Dependent Demand

Posted on:2013-04-14Degree:MasterType:Thesis
Country:ChinaCandidate:Q C ShenFull Text:PDF
GTID:2249330395462168Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
Vendor Managed Inventory (VMI) creatively entrusted ordering strategyand inventory management activities in the supply chain to the supplier, andrelevant inventory costs are borne by the supplier, so it can effectively solvesome of the drawbacks of the traditional inventory management model.However, from the perspective of the supply chain, the simple mechanism ofthe vendor managed inventory can’t eliminate the double marginalizationeffect, and it can’t achieve the coordination of the supply chain.Based on the analysis research of situation, considered VMI supply chainwhich constitutes a single supplier and single retailer and the market demandis driven by inventory, including retailers accounted for dominant position, itanalyzed the products’ features whose demand is driven by the inventory,decentralized decision-making, they determine the optimal wholesale price ofthe supplier’s optimal supplier and retailer according to the Stackelberg gameprocess, the optimal shipments are proportional to wholesale optimal price, itsoptimal inventory level is always lower than the optimal inventory levelsunder the centralized decision-making, the system has always been difficult toavoid double marginalization effect.Considering the disadvantages of double marginalization effect when theproducts whose inventory is affected by demand are integrated into vendormanaged inventory mechanism, this paper raised the wholesale price contractwith cost-sharing and revenue sharing contract to coordinate the VMI supplychain with cost-sharing. if the retailers stand in the coordination of the supplychain’s point of view, the wholesale price contract with cost-sharing under thepremise that both sides’ profit has some growth, will make the suppliershipments under the contract incentives achieve the centralizeddecision-making level, achieving a VMI supply chain coordination, and any distribution of the supply chain profits; if the retailers stand on its ownprofit-maximizing point of view, the contract with cost-sharing revenuesharing can not make the supply chain coordination, VMI System channel’sexpected profit is always less than the centralized decision-making channels’profit, accounting for the dominant position of the retailer’s expected profit isalways greater than the supplier’s expected profit.This study enriches the content of the VMI supply chain contractcoordination theory, provides a theoretical support for the establishment oflong-term, effective VMI supply chain coordination contract, it also providesscientific business decisions for the nodes in the supply chain, so it hasimportant theoretical and practical value.
Keywords/Search Tags:Vendor Managed Inventory, Pareto optimal supply chain contract
PDF Full Text Request
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