We study lead time options in a manufacturer and a retailer supply chain where the retailer uses the (R, Q) inventory policy: the retailer places an order to the manufacturer who uses a transporter to deliver the order a lead time later. The manufacturer promises to expedite or postpone the delivery (using its own means or different transportation options) by a certain amount of time if the ret...

In this paper, we consider a two-leveled chain of supply that includes a manufacturer and a few retailers and in this chain VMI (Vendor-Managed Inventory) policy has been used. In this model, the manufacturer produces a limited amount of kind of production, and each retailer whose request is limited purchases the production with the wholesale price and sells it in retail price. In addition to t...

We consider a two node supply chain with a rational manufacturer–retailer pair, in which the retailer has private information that affects the nodes' reservation levels. Quantity discounts offered by the manufacturer is the mechanism we propose in order to achieve reduced costs for both supply chain nodes. We derive analytical expressions of the quantity discounts that minimize the manufacturer...

Abstract   Vertical cooperative (co-op) advertising is typically a cost sharing mechanism and coordinated effort by the channel’s members in order to increase demand and overall profits. In this marketing strategy, the manufacturer shares a fraction of the retailer’s advertising investment. This paper studies the advertising and pricing decisions in a retailer-manufacturer supply chain in which...

We study the value of information sharing in a two-stage supply chain with a single manufacturer and a single retailer in an infinite time horizon, where the manufacturer has finite production capacity and the retailer faces independent demand+ The manufacturer receives demand information even during periods of time in which the retailer does not order+Allowing for time-varying cost functions, ...

Supply chain coordination has received substantial attention in the operations literature in recent years. Coordination issues in supply chains arise due to several factors, an important one being the difference in the cost impact of inventory and replenishment decisions on the manufacturer and retailer. In this paper, we address this asymmetry in cost impact that can lead to sub-optimal channe...

Pricing and advertising are two important marketing strategies in the supply chain management which lead to customer demand’s increase and therefore higher profit for members of supply chains. This paper considers advertising, and pricing decisions simultaneously for a three-level supply chain with one supplier, one manufacturer and one retailer. The amount of market demand is influenced ...

In order to evaluate the multistage supply chain efficiency, an appropriate performance evaluation system is importantly required. A representative multistage supply chain has three members composing a supplier-manufacturer-retailer structure, and has intermediate measures connecting these supply chain members. Existing data envelopment analysis (DEA) models have difficulties in measuring these...

W e analyze the value of and interaction between production postponement and information sharing, which are two distinct strategies to reduce manufacturers’ uncertainty about demand. In both single-level and two-level supply chains, from the manufacturer’s perspective, while information sharing is always valuable, production postponement can sometimes be detrimental. Furthermore, the value of p...

The significant effect of social preference on strategic behavior has been convinced by recent research. Along this stream of research, we study firms’ altruistic incentives in supply chains since the selfish rationality can’t deal with economic behaviors. We show that the performance of the supply chain in consideration of altruism is between those of scenarios under decentralization and under...