A Research On Ordering And Pricing Policy In A Distribution System With Transshipment And Capital Sharing

With the development of global supply chain management theory, enterprises are paying more and more attention to cooperation and resource sharing in supply chain. The technology of supply chain coordination, horizontal integration and vertical integration has begun to play an important role in enterprise management practice. The imbalance between supply and demand is a difficult problem for wholesalers and retailers for a long time. The shortage will reduce customer satisfaction and damage the corporate reputation. The surplus product will increase inventory cost, and lead a greater loss for some products having a short shelf life. In addition, retailers have to make the purchasing decision in the constraint of funds, it may lead to a waste of funds, and the lack of funds will make retailers can't order enough product to meet the market.Thus retailers can improve their efficiency by sharing goods and money. The paper will study a supply chain system which is composed of one supplier and two retailers under capital constraints. First, we will classify the supply chain in four kinds depending whether foods transporting and funds sharing exist between the retailers. Since the level of supply chain collaboration is difficult, the optimal order quantity decision is different, so the optimal pricing decision of vendors is also different. This paper will study the optimal order quantity and pricing in the different kinds of supply chain. The study results showed that the product transporting and funds sharing between retailers will make the supply and demand match better. The product transporting will balance the products of two retailers, and the funds sharing will reduce capital constraints for the retailer owing less funds, both product transporting and funds sharing can improve the retailer's expected revenue.