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Please use this identifier to cite or link to this item: http://120.114.52.212/NPIC/handle/987654321/147

Title: The multi-item replenishment problem in a two-echelon supply chain: the effect of centralization versus decentralization
Authors: Jen-Ming Chen;Tsung-Hui Chen
Contributors: 行銷與流通管理系(所)
Keywords: Channel coordination;Joint replenishment;Pareto improvements;Quantity discount;EOQ
Date: 2005
Issue Date: 2010-02-02T04:24:14Z
Abstract: This paper deals with a joint replenishment arrangement with a two-echelon supply chain, having one supplier
or manufacturer and one buyer or retailer, facing a deterministic demand and selling a number of products in the
marketplace. We considered a situation involving a family of products sharing a common production facility, in
which there is a major setup cost for each production run and an item-specific minor processing cost for each item
being added into production. The retailer also has major setup costs due to economies of scale in transportation and
distribution expenses and an item-specific minor setup cost for each additional item involved in the order. In such
a setting, it seemed as if it would be economically beneficial for both parties to enter into a joint replenishment
arrangement. We proposed both centralized and decentralized decision models to determine the best solution to
minimize costs. We proved the optimal properties of the models, developed a search algorithm and numerically
illustrated the benefits generated from such an arrangement. In addition,wehave proposed a profit sharing mechanism
through a well-known quantity discount scheme, so that potential Pareto improvements may be achieved among the
participants of a coordinated supply chain.
Relation: Computers & Operations Research 32 (2005) p.3191–3207
Appears in Collections:[行銷與流通管理系(所)] 期刊論文

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