A new cooperative scenario for supply chains using common replenishment epochs

Ming-Jong Yao*, Chuang Chun Chiou

*Corresponding author for this work

Research output: Contribution to journalArticle

5 Scopus citations

Abstract

In this paper, we propose a new cooperative scenario for supply chains using common replenishment epochs based on the mathematical model presented in Viswanathan and Piplani's [25] paper. In order to solve an optimal solution for the cooperative scenario, we first conduct a theoretical analysis on the optimal cost function of the mathematical model. Then, we propose an efficient search algorithm by utilizing our theoretical results on the cooperative scenario. Also, we introduce a saving-sharing mechanism that could motivate the buyers to cooperate with the vendor. Importantly, the proposed saving-sharing mechanism assists the supply chain system to create a multi-win situation among the vendor and the buyers. Using the 48 sets of data in Viswanathan and Piplani's [25] paper, we demonstrate that the proposed cooperative scenario could attain significant improvement on the costs for both the vendor and the buyers in comparison to the Stackelberg-game scenario.

Original languageEnglish
Pages (from-to)263-282
Number of pages20
JournalJournal of the Operations Research Society of Japan
Volume52
Issue number3
DOIs
StatePublished - 1 Jan 2009

Keywords

  • Business policy
  • Cost models
  • Inventory control
  • Operations management
  • Optimization
  • Search procedure

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