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An integrated vendor-buyer model with stock-dependent demand

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DOI

  • Mohsen S. Sajadieh, Sharif University of Technology, Iran, Islamic Republic of
  • Anders Thorstenson
  • Mohammad R. Akbari Jokar, Sharif University of Technology, Iran, Islamic Republic of
  • CORAL - Centre for Operations Research Applications in Logistics
  • Department of Business Studies
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.
Original languageEnglish
JournalTransportation Review. Part E: Logistics and Transportation Review
Volume46
Issue6
Pages (from-to)963-974
ISSN1366-5545
DOIs
Publication statusPublished - 2010

    Research areas

  • Batch production, Double marginalization, Inventory, Integrated vendor-buyer model, Stock-dependent demand

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