We study an integrated quantity discount and vehicle routing problem where truck utilization is increased by building multi-stop routes and increasing order sizes through a purchase incentive. We model the problem and prove it to be NP-hard. Our experiments show that commercial solvers do not effectively solve instances with more than ten buyers. We propose the use of non-compromising route eli...

A large proportion of consumer returns fall into the category of false failure returns, which refer to returns without functional defects. In this paper, we consider profits resulting from exerting costly effort to reduce false failure returns in a reverse supply chain. The supply chain as a whole has a strong incentive to reduce such returns for cost saving. However, retailers typically enjoy ...

With the complex and changeable environment, demand yield in perishable products supply chain are usually uncertain. This paper studies a joint contract that combines revenue sharing with quantity discount to coordinate under uncertainty, which consists of one manufacturer retailer. The retailer pays down payment at beginning, gives shares proportion profit from last. To make sure both members ...

We consider a newsvendor problem in a supply chain that consists of a manufacturer and a retailer. The manufacturer is the Stackelberg leader and the retailer is the follower.We examine how themanufacturer can contract awholesale-price-only agreementwith its retailer thatmaximizes its profit.We also propose a returns policy with a wholesale-price-discount scheme (returns-discount contract) that...

Coordinating activities among members of a distribution channel has been a subject of great attention in the past two decades. Among various methods to coordinate independent channel members, a number of studies in the literature suggest quantity discount as a mechanism to achieve incentive-compatible coordination between a manufacturer and his retailer. The rationale behind this coordination m...

In this paper, the coordination of pricing and periodic review inventory decisions in a supplier-retailer supply chain (SC) is proposed. In the investigated SC, the retailer faces a stochastic price dependent demand and determines the review period, order-up-to-level, and retail price. On the other hand, the supplier decides on the replenishment multiplier. Firstly, the decentralized and centra...

The perishable product’s dynamic pricing with quantity discount strategy is studied. The seller uses two-period dynamic price during the whole sale period and introduces quantity discount in second sale period in order to improve the seller’s profit. The mathematic model expressions are obtained by assuming that consumer’s reservation price draws from a uniform distribution and the price discou...

This work develops optimal dynamic policies for integrated production and marketing planning in a vertically decentralized single-manufacturer and single-retailer channel over a multi-period planning horizon, subject to deteriorating goods and a multivariate demand function. This work formulates the discount profit maximization problem, and provides inter-enterprise dynamic joint decisions for ...

Revenue-sharing contracts are a kind of mechanism aimed at improving performance and achieving precise coordination of the supply chain. In this paper, we analyse and develop the revenue-sharing contract model of the three-level supply chain with distributor’s sales effort dependent demand. The paper discusses the impacts of sales efforts on coordination of the supply chain and explains the rea...

In an earlier paper, we showed that, in a multi-period setting (but with no multi-period commitment) with two client types (adverse selection) and a competitive insurer environment, a comparasin between periodic repetitions of the classic Rothschild-Stiglitz separating equilibrium contract menu and a second contract based on Bayesian learning (which we identify as a bonus-malus contract) yields...