COORDINATION MECHANISM OF JOINT PROCUREMENT THROUGH QUANTITATIVE DISCOUNTS
Coordination mechanism under the optimal quantitative discounts provided by the supplier as well as the economic order quantity (EOQ) procurement policy employed by heterogeneous retailers with various costs and demand parameters are investigated.Compared to fixed wholesale price policy,quantitative discounts policy eliminates integrated supply chain cost to some extend and among supplier and retailers are able to share system cost saving benefits.If retailers’ order quantity and supplier’s order processing cost are more reduced,channel coordination effectiveness can be achieved at a higher level and system cost can be further eliminated.With the two sufficient but not necessary conditions being fulfilled,independent replenishment model is dominated by the joint replenishment strategy.The results show that the quantitative discounts provided by the supplier can achieve channel coordination depends intimately upon the replenishment model applied by the retailers and these could be advantageous in many environments.
supply chain management channel coordination joint procurement quantitative discounts EOQ
Hong-Wei Liu
School of Information, Beijing Wuzi University, Beijing 101149, China
国际会议
11th International Symposium on Operations Research and its Applications(第11届运筹学及其应用国际研讨会)
安徽黄山
英文
207-211
2013-08-23（万方平台首次上网日期，不代表论文的发表时间）