Coordination Tactic of Downstream Capacity Expansion in Supply Chain
We model a supply chain consisting of a supplier and a retailer, where the mean demand rate has relation to the guaranteed delivery time offered by the retailer to the customers and the market price, where the price itself is determined by the length of the delivery time. A mathematical framework is proposed to understand the interrelations among delivery time guarantee, pricing and order processing capacity of the retailer. The model and numeral analysis illustrate that the demand is higher and the retailer needs larger order processing capacity in the integrated decision than in the decentralized decision. We then show that the supplier can encourage the retailer to expand the capaciy and to maximize the profits of whole supply chain by sharing in incremental profit to the retailer.
supply chain capacity expansion guaranteed delivery time coordination tactic
Huaming Gui Shihua Ma
School of Management,Huazhong University of Science & Technology,Wuhan 430074, China School of Business & Management,Hubei University of Economics ,Wuhan 430205, China
国际会议
上海
英文
2007-09-21（万方平台首次上网日期，不代表论文的发表时间）