Research on Decentralized Supply Chain with Channel-Wide Profit Maximization

Liang-Tu Chen; Shih-Wen Chien; Chun-Chin Wei

doi:doi:10.11648/j.sjbm.20170504.11

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Research on Decentralized Supply Chain with Channel-Wide Profit Maximization

Liang-Tu Chen, Shih-Wen Chien, Chun-Chin Wei

Published in Science Journal of Business and Management (Volume 5, Issue 4)

Received: 12 June 2017 Published: 14 June 2017

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Abstract

This study explores the problem of optimally dynamic joint decisions: replenishment quantity, retail price and depletion time, in a vertically decentralized single-retailer and single-supplier supply chain over a dynamic multi-period planning horizon, subject to multivariate demand function and deteriorating goods with shortages allowed and with no consideration of fixed costs. This research uses a calculus-based formulation coupled with dynamic programming techniques to solve the channel-wide profit maximization under price-only contract and consignment contract respectively. The analysis reveals that the consignment contract can significantly achieve higher channel-wide profit than the price-only contract for the dynamic decentralized channel.

Published in	Science Journal of Business and Management (Volume 5, Issue 4)
DOI	10.11648/j.sjbm.20170504.11
Page(s)	132-135
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Decentralized Supply Chain, Dynamic Pricing, Shortages, Fixed Costs

References

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[9]	Ru J, Wang Y. Consignment contracting: who should control inventory in the supply chain. European Journal of Operational Research 2010; 201(3):760-769.
[10]	Chen LT. Dynamic supply chain coordination under consignment and vendor-managed inventory in retailer-centric B2B electronic markets. Industrial Marketing Management 2013; 42(4):518-531.
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[20]	Lin YS, Yu JCP, Wang KJ. An efficient replenishment model of deteriorating items for a supplier-buyer partnership in hi-tech industry. Production Planning & Control 2009; 20(5): 431-444.

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APA Style

Liang-Tu Chen, Shih-Wen Chien, Chun-Chin Wei. (2017). Research on Decentralized Supply Chain with Channel-Wide Profit Maximization. Science Journal of Business and Management, 5(4), 132-135. https://doi.org/10.11648/j.sjbm.20170504.11

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ACS Style

Liang-Tu Chen; Shih-Wen Chien; Chun-Chin Wei. Research on Decentralized Supply Chain with Channel-Wide Profit Maximization. Sci. J. Bus. Manag. 2017, 5(4), 132-135. doi: 10.11648/j.sjbm.20170504.11

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AMA Style

Liang-Tu Chen, Shih-Wen Chien, Chun-Chin Wei. Research on Decentralized Supply Chain with Channel-Wide Profit Maximization. Sci J Bus Manag. 2017;5(4):132-135. doi: 10.11648/j.sjbm.20170504.11

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@article{10.11648/j.sjbm.20170504.11,
  author = {Liang-Tu Chen and Shih-Wen Chien and Chun-Chin Wei},
  title = {Research on Decentralized Supply Chain with Channel-Wide Profit Maximization},
  journal = {Science Journal of Business and Management},
  volume = {5},
  number = {4},
  pages = {132-135},
  doi = {10.11648/j.sjbm.20170504.11},
  url = {https://doi.org/10.11648/j.sjbm.20170504.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20170504.11},
  abstract = {This study explores the problem of optimally dynamic joint decisions: replenishment quantity, retail price and depletion time, in a vertically decentralized single-retailer and single-supplier supply chain over a dynamic multi-period planning horizon, subject to multivariate demand function and deteriorating goods with shortages allowed and with no consideration of fixed costs. This research uses a calculus-based formulation coupled with dynamic programming techniques to solve the channel-wide profit maximization under price-only contract and consignment contract respectively. The analysis reveals that the consignment contract can significantly achieve higher channel-wide profit than the price-only contract for the dynamic decentralized channel.},
 year = {2017}
}

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TY  - JOUR
T1  - Research on Decentralized Supply Chain with Channel-Wide Profit Maximization
AU  - Liang-Tu Chen
AU  - Shih-Wen Chien
AU  - Chun-Chin Wei
Y1  - 2017/06/14
PY  - 2017
N1  - https://doi.org/10.11648/j.sjbm.20170504.11
DO  - 10.11648/j.sjbm.20170504.11
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
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PB  - Science Publishing Group
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AB  - This study explores the problem of optimally dynamic joint decisions: replenishment quantity, retail price and depletion time, in a vertically decentralized single-retailer and single-supplier supply chain over a dynamic multi-period planning horizon, subject to multivariate demand function and deteriorating goods with shortages allowed and with no consideration of fixed costs. This research uses a calculus-based formulation coupled with dynamic programming techniques to solve the channel-wide profit maximization under price-only contract and consignment contract respectively. The analysis reveals that the consignment contract can significantly achieve higher channel-wide profit than the price-only contract for the dynamic decentralized channel.
VL  - 5
IS  - 4
ER  -

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Author Information

Liang-Tu Chen

Department of Commerce Automation and Management, National Pingtung University, Pingtung, Taiwan ROC
Shih-Wen Chien

Department of Information Management, National Kaohsiung University of Applied Sciences, Kaohsiung, Taiwan ROC
Chun-Chin Wei

Department of Marketing and Distribution Management, Chien-Hsin University, Chungli, Taiwan ROC

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APA Style

Liang-Tu Chen, Shih-Wen Chien, Chun-Chin Wei. (2017). Research on Decentralized Supply Chain with Channel-Wide Profit Maximization. Science Journal of Business and Management, 5(4), 132-135. https://doi.org/10.11648/j.sjbm.20170504.11

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ACS Style

Liang-Tu Chen; Shih-Wen Chien; Chun-Chin Wei. Research on Decentralized Supply Chain with Channel-Wide Profit Maximization. Sci. J. Bus. Manag. 2017, 5(4), 132-135. doi: 10.11648/j.sjbm.20170504.11

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AMA Style

Liang-Tu Chen, Shih-Wen Chien, Chun-Chin Wei. Research on Decentralized Supply Chain with Channel-Wide Profit Maximization. Sci J Bus Manag. 2017;5(4):132-135. doi: 10.11648/j.sjbm.20170504.11

Copy | Download

@article{10.11648/j.sjbm.20170504.11,
  author = {Liang-Tu Chen and Shih-Wen Chien and Chun-Chin Wei},
  title = {Research on Decentralized Supply Chain with Channel-Wide Profit Maximization},
  journal = {Science Journal of Business and Management},
  volume = {5},
  number = {4},
  pages = {132-135},
  doi = {10.11648/j.sjbm.20170504.11},
  url = {https://doi.org/10.11648/j.sjbm.20170504.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20170504.11},
  abstract = {This study explores the problem of optimally dynamic joint decisions: replenishment quantity, retail price and depletion time, in a vertically decentralized single-retailer and single-supplier supply chain over a dynamic multi-period planning horizon, subject to multivariate demand function and deteriorating goods with shortages allowed and with no consideration of fixed costs. This research uses a calculus-based formulation coupled with dynamic programming techniques to solve the channel-wide profit maximization under price-only contract and consignment contract respectively. The analysis reveals that the consignment contract can significantly achieve higher channel-wide profit than the price-only contract for the dynamic decentralized channel.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Research on Decentralized Supply Chain with Channel-Wide Profit Maximization
AU  - Liang-Tu Chen
AU  - Shih-Wen Chien
AU  - Chun-Chin Wei
Y1  - 2017/06/14
PY  - 2017
N1  - https://doi.org/10.11648/j.sjbm.20170504.11
DO  - 10.11648/j.sjbm.20170504.11
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 132
EP  - 135
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20170504.11
AB  - This study explores the problem of optimally dynamic joint decisions: replenishment quantity, retail price and depletion time, in a vertically decentralized single-retailer and single-supplier supply chain over a dynamic multi-period planning horizon, subject to multivariate demand function and deteriorating goods with shortages allowed and with no consideration of fixed costs. This research uses a calculus-based formulation coupled with dynamic programming techniques to solve the channel-wide profit maximization under price-only contract and consignment contract respectively. The analysis reveals that the consignment contract can significantly achieve higher channel-wide profit than the price-only contract for the dynamic decentralized channel.
VL  - 5
IS  - 4
ER  -

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