Quantity Discount Coordination for Supply Chains with Deteriorating Items

• Main Authors: Hong-Jin Jian, 簡宏錦
• Other Authors: Yeu-Shiang Huang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/35251263066088936355

碩士 === 國立成功大學 === 工業與資訊管理學系碩博士班 === 95 === During the past few years, many researches dealt with different inventory shortage models for deteriorating items, and used maximizing profits as an objective to find the optimal replenishment policy over a finite planning horizon. However they ignored the profit achievement of members in supply chains. A suitable coordination mechanism should be profitable not only for buyers but also for suppliers. This study develops a model for illustrating how to use a quantity discount policy to achieve supply chain coordination for deteriorating items. We here focus on how a supply chain obtains an optimal solution when a supplier provides quantity discount for buyers. We assumed that the buyer’s shortages in inventory are allowed and backlogged completely. A single-item model for deteriorating items with a constant demand and a Weibull deterioration distribution is considered. We expect to raise the profits of the members in the whole supply chain by using profit sharing. The numerical solution of the model is obtained, and the sensitivity analysis of the parameters involved in the model is also examined. Finally, the result of the numerical application suggests that the buyer should reduce the purchasing cost and the supplier should reduce the fixed cost. The coordination mechanism is profitable not only for the buyer but also for the supplier. The model can be extended in several ways. For instance, we may extend the constant demand rate to a function of selling price, and others.