Coordinating Drop-shipping Supply Chain when the Retailer Holds Inventory
Performance of drop-shipping supply chain can be improved when the retailer holds inventory. In the drop-shipping supply chain with retailer holding inventory, the retailer may obtain more profit from selling inventory of his own than from drop shipping. Currently, there is scant literature involved in how to coordinate the Drop-Shipping Supply Chain with Retailer Holding Inventory. In this paper, mathematical models are constructed to determine optimal order quantity of the retailer and to design coordination contracts in the supply chain. This study shows that (I) there is an optimal quantity for the retailer whether control of the chain is centralized or decentralized, (II) the combinational contract of traditional wholesale price and dropshipping markup can not coordinate the supply chain, but the combinational contract of drop-shipping markup and buyback can. In the coordinative contract, parameters all must be adjusted simultaneously. Finally, numerical experiment is used to exemplify the results and sensitivity analysis is performed.
Supply chain management Inventory management Drop shipping Coordination Backup contract
LI Hainan
Strategic Planning School Chongqing Technology and Business University Chongqing, P. R. China
国际会议
2010 International Conference on Construction and Project Management(2010年IEEE建设与项目管理国际会议 2010ICCPM)
成都
英文
141-145
2010-11-16（万方平台首次上网日期，不代表论文的发表时间）