This paper, studies the coordination of two-echelon supply chains using a credit (delayed) payment option and/or a wholesale price discount offer. We develop models for optimizing individual members’, as well as supply chain’s objectives. These models lead to the determination of the retail price and the order quantity for the buyer, as well as the production batch size, wholesale discount and/...

In this paper, we examine the issue of order coordination between a supplier and multiple retailers in a decentralized multi-echelon inventory/distribution system where the supplier provides a product to multiple retailers who experience static demand and standard inventory costs. Specifically, we propose and analyze a new policy where a manufacturer, who outsources production to an OEM, offers...

Supplier selection and material procurement planning are the most important issues in supply chain management. This decision is complicated when the buyers face with discount price schemes. In real situation, each supplier may apply different methods such as different types of discount schedules and various types of payment in order to increase market share. In this situation, buyers try to sel...

In this paper, we consider a supply chain which consists of a single manufacturer and a single retailer with a single product type. Demand is assumed to be dependent on the retailer's stock level. Without coordination, the retailer determines its order quantity to maximize its own profit, which is usually smaller than the manufacturer's economic production quantity. Three coordination policies ...

In this paper, an incentive policy is proposed to coordinate ordering, lead time, and pricing strategies in a two-echelon manufacturing supply chain (SC) consisting of one manufacturer and one retailer. The system is faced with a stochastic demand which depends on both price and lead time. The manufacturer decides on production size and manufacturing acceleration rate while the retailer determi...

This paper evaluates the impact of price discount contracts and pricing schemes on the dual-channel supply chain competition. Channel conflict occurs when the supplier enters the online direct channel. Traditional contracts normally require tedious administrational participation, full information of the cost structures, and other factors. The introduction of simple price discount contracts aims...

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...

As the third party logistics partners (carriers) taking a more and more significant role in supply chain practices and customer service performance improvement, there is an emerging need for the studies on optimal channel coordination policies for business processes involving not only supplier and buyer, but also transportation partners. In this paper, we explicitly add a transportation partner...

A supply chain consisting of a single-supplier and a single-buyer is modeled and compared in two different modes: non-coordinated and coordinated. The model is established based on the fact that the demand is uncertain and shortages are considered as lost sales. The buyer’s order lead time is a nonlinear function of the buyer’s order size and the number of shipments from the supplier. Quantity ...