Supply Chain Optimization with Quantity Discount Policy under Demand Uncertainty

Supply chain coordination with quantity discount policy

This paper develops a model for illustrating how to use quantity discount policy to achieve supply chain coordination. A supplier–buyer system selling one type of product with multi-period and probabilistic customer demand is considered. We first show that if both the buyer and supplier can find a coordination mechanism to make joint decisions, the joint profit in this situation is more than th...

A multi-product green supply chain under government supervision with price and demand uncertainty

In this paper, a bi-level game-theoretic model is proposed to investigate the effects of governmental financial intervention on green supply chain. This problem is formulated as a bi-level program for a green supply chain that produces various products with different environmental pollution levels. The problem is also regard uncertainties in market demand and sale price of raw materials and pro...

Supply chain planning models with general backorder penalties, supply and demand uncertainty, and quantity discounts

A joint pricing-network design model for a resilient closed-loop supply chain under quantity discount

In this paper, a novel resilient multi-echelon closed-loop location-allocation-inventory problem (RMCLIP) is addressed that optimizes strategic and tactical decisions simultaneously. In order to represent the purchasing cost of raw material from the supplier, a pricing model under quantity discounts is employed in the closed-loop supply chain (CLSC). Considering the capability of returning the ...

A simulation based optimization approach to supply chain management under demand uncertainty

Cost effective supply chain management under various market, logistics and production uncertainties is a critical issue for companies in the chemical process industry. Uncertainties in the supply chain usually increase the variance of profits (or costs) to the company, increasing the likelihood of decreased profit. Demand uncertainty, in particular, is an important factor to be considered in th...