Coordinating a Channel with a Joint VMI and Consignment Contract for a Deteriorating Item and Stock Dependent Demand
The aim of the paper is to coordinate a vertically distribution channel (one vendor multiple retailers) under joint vendor-managed inventory (VMI) and consignment contractual arrangement The product is deteriorating in time at a constant rate and with stock-level dependent demand. We formulate the channel as a profit-maximization model and carry out equilibrium analysis to represent the performance the coordination mechanisms. In addition, the efficient frontier is constructed geographically to illustrate the feasible region of Pareto improvements from the channel-wide aspect. Our analysis reveals that the joint VMI and consignment policy will obtain a lower retail price, more replenishment quantity and a shorter reorder cycle than these under a VMI only policy. It even increases channel wide profit by 14.9％ compared with it in a VMI only policy.
Channel coordination consignment pareto improvement vendor-managed inventory
I-Chen Lin Jen-Ming Chen
Institute of Industrial Management,National Central University,Jhongli,R.O.C.
国际会议
厦门
英文
1306-1310
2010-10-29（万方平台首次上网日期，不代表论文的发表时间）