An integrated vendor–buyer model with stock-dependent demand

Mohsen S. Sajadieh · Anders Thorstenson · Mohammad Reza Akbari Jokar

84 citations0/0 files storedTransportation Research Part E Logistics and Transportation Review

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Supply Chain and Inventory Management Quality and Supply Management Sustainable Supply Chain Management

Abstract

We develop an integrated vendor–buyer model for a two-stage supply chain . The vendor manufactures the product and delivers it in a number of equal-sized batches to the buyer. The items delivered are presented to the end customers in a display area. Demand is assumed to be positively dependent on the amount of items displayed. The objective is to maximize total supply chain profit. The numerical analysis shows that buyer–vendor coordination is more profitable in situations when demand is more stock dependent. It also shows that the effect of double marginalization provides a link between the non-coordinated and the coordinated case.

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References

1989Handbooks in operations research and management science 1950Vertical Integration and Antitrust Policy 1983Managing Channel Profits 1986A JOINT ECONOMIC‐LOT‐SIZE MODEL FOR PURCHASER AND VENDOR 1977An integrated inventory model for a single supplier-single customer problem 1995Channel Coordination and Quantity Discounts 1988“A JOINT ECONOMIC‐LOT‐SIZE MODEL FOR PURCHASER AND VENDOR”: A COMMENT*1995A one-vendor multi-buyer integrated inventory model

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