IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i10p5683-d557556.html
   My bibliography  Save this article

Research on Supplier Collaboration of Daily Consumer Goods under Uncertainty of Supply and Demand

Author

Listed:
  • Tianwen Song

    (Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China)

  • Qiang Zhang

    (Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China)

  • Junmu Ran

    (Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China)

  • Wenxue Ran

    (Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China)

Abstract

This paper establishes the decentralized decision-making model of consumer goods, the active collaboration model of consumer goods suppliers, and the decentralized decision-making model of customized consumer goods. Through formula derivation and simulation, the benefit and influence differences of the three modes are compared. This paper studies the influence of supplier’s active collaboration on the supply and demand instability of consumer goods and discusses the ideal value of supply chain inventory control. In China’s modern circular economy, the inventory control of the consumer goods supply chain is unscientific and nonstandard. We discuss a new inventory control method and study the ideal value of supply chain inventory control. It helps reduce the inventory shortage loss caused by the uncertainty of daily consumer goods, improve the efficiency of the supply chain, enhance the liquidity of supply chain inventory to achieve the purpose of increasing economic value. It has reference value for the inventory control of consumer goods in other countries and regions. The results show that under certain conditions, the horizontal collaboration between suppliers can improve the completeness of consumer goods. The collaboration between suppliers can reduce the hidden dangers caused by the uncertainty of supply and demand and significantly reduce the total inventory cost of manufacturers and improve profits.

Suggested Citation

  • Tianwen Song & Qiang Zhang & Junmu Ran & Wenxue Ran, 2021. "Research on Supplier Collaboration of Daily Consumer Goods under Uncertainty of Supply and Demand," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:10:p:5683-:d:557556
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/10/5683/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/10/5683/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dwivedi, Abhishek & Nayeem, Tahmid & Murshed, Feisal, 2018. "Brand experience and consumers’ willingness-to-pay (WTP) a price premium: Mediating role of brand credibility and perceived uniqueness," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 100-107.
    2. Lotte Verdonck & AN Caris & Katrien Ramaekers & Gerrit K. Janssens, 2013. "Collaborative Logistics from the Perspective of Road Transportation Companies," Transport Reviews, Taylor & Francis Journals, vol. 33(6), pages 700-719, November.
    3. Qu, Zhan & Raff, Horst & Schmitt, Nicolas, 2018. "Incentives through inventory control in supply chains," International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 486-513.
    4. Anthony Vaz & Shaheen Mansori, 2017. "Target Days versus Actual Days of Finished Goods Inventory in Fast Moving Consumer Goods," International Business Research, Canadian Center of Science and Education, vol. 10(6), pages 19-34, June.
    5. Dong, Chuanwen & Transchel, Sandra & Hoberg, Kai, 2018. "An inventory control model for modal split transport: A tailored base-surge approach," European Journal of Operational Research, Elsevier, vol. 264(1), pages 89-105.
    6. Gang Du & Chuanwang Sun & Jinxian Weng, 2016. "Liner Shipping Fleet Deployment with Sustainable Collaborative Transportation," Sustainability, MDPI, vol. 8(2), pages 1-15, February.
    7. Frank W. Ciarallo & Ramakrishna Akella & Thomas E. Morton, 1994. "A Periodic Review, Production Planning Model with Uncertain Capacity and Uncertain Demand---Optimality of Extended Myopic Policies," Management Science, INFORMS, vol. 40(3), pages 320-332, March.
    8. Sreedevi, R. & Saranga, Haritha, 2017. "Uncertainty and supply chain risk: The moderating role of supply chain flexibility in risk mitigation," International Journal of Production Economics, Elsevier, vol. 193(C), pages 332-342.
    9. Ponte, Borja & Costas, José & Puche, Julio & Pino, Raúl & de la Fuente, David, 2018. "The value of lead time reduction and stabilization: A comparison between traditional and collaborative supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 165-185.
    10. Lamghari-Idrissi, Douniel & Basten, Rob & van Houtum, Geert-Jan, 2020. "Spare parts inventory control under a fixed-term contract with a long-down constraint," International Journal of Production Economics, Elsevier, vol. 219(C), pages 123-137.
    11. Shuting Li & Xiangfeng Chen, 2019. "The role of supplier collaboration and risk management capabilities in managing product complexity," Operations Management Research, Springer, vol. 12(3), pages 146-158, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Madhukar Chhimwal & Saurabh Agrawal & Girish Kumar, 2021. "Measuring Circular Supply Chain Risk: A Bayesian Network Methodology," Sustainability, MDPI, vol. 13(15), pages 1-22, July.
    2. Saxena, Neha & Sarkar, Mitali & Sarkar, Biswajit, 2024. "Which retail strategy for shelf life products can satisfy consumers under game policy?," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    3. Khouja, Moutaz & Hammami, Ramzi, 2023. "Building viable stockpiles of personnel protective equipment," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1206-1224.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. De Moor, Bram J. & Creemers, Stefan & Boute, Robert N., 2023. "Breaking truck dominance in supply chains: Proactive freight consolidation and modal split transport," International Journal of Production Economics, Elsevier, vol. 257(C).
    2. Arsalan Zahid Piprani & Noor Ismawati Jaafar & Suhana Mohezar Ali & Muhammad Shujaat Mubarik & Muhammad Shahbaz, 2022. "Multi-dimensional supply chain flexibility and supply chain resilience: the role of supply chain risks exposure," Operations Management Research, Springer, vol. 15(1), pages 307-325, June.
    3. Yan, Xiaoming & Zhang, Minghui & Liu, Ke, 2010. "A note on coordination in decentralized assembly systems with uncertain component yields," European Journal of Operational Research, Elsevier, vol. 205(2), pages 469-478, September.
    4. Gansterer, Margaretha & Hartl, Richard F. & Sörensen, Kenneth, 2020. "Pushing frontiers in auction-based transport collaborations," Omega, Elsevier, vol. 94(C).
    5. Dan Liu & Zhenghong Deng & Qipeng Sun & Yong Wang & Yinhai Wang, 2019. "Design and Freight Corridor-Fleet Size Choice in Collaborative Intermodal Transportation Network Considering Economies of Scale," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    6. Dong, Chuanwen & Transchel, Sandra, 2020. "A dual sourcing inventory model for modal split transport: Structural properties and optimal solution," European Journal of Operational Research, Elsevier, vol. 283(3), pages 883-900.
    7. Kutzner, Sarah C. & Kiesmüller, Gudrun P., 2013. "Optimal control of an inventory-production system with state-dependent random yield," European Journal of Operational Research, Elsevier, vol. 227(3), pages 444-452.
    8. Alev Ozer Torgaloz & Mehmet Fatih Acar & Cemil Kuzey, 2023. "The effects of organizational learning culture and decentralization upon supply chain collaboration: analysis of covid-19 period," Operations Management Research, Springer, vol. 16(1), pages 511-530, March.
    9. Y. Boulaksil & J. C. Fransoo & T. Tan, 2017. "Capacity reservation and utilization for a manufacturer with uncertain capacity and demand," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(3), pages 689-709, July.
    10. Gullu, Refik, 1998. "Base stock policies for production/inventory problems with uncertain capacity levels," European Journal of Operational Research, Elsevier, vol. 105(1), pages 43-51, February.
    11. Nicholas G. Hall & Marc E. Posner & Chris N. Potts, 2021. "Online production planning to maximize the number of on-time orders," Annals of Operations Research, Springer, vol. 298(1), pages 249-269, March.
    12. Cheong, Taesu & Song, Sang Hwa, 2013. "The value of information on supply risk under random yields," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 27-38.
    13. Shu Wang & Ying-Kai Liao & Wann-Yih Wu & Khanh Bao Ho Le, 2021. "The Role of Corporate Social Responsibility Perceptions in Brand Equity, Brand Credibility, Brand Reputation, and Purchase Intentions," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    14. Lorenzo Bruno Prataviera & Alessandro Creazza & Marco Melacini & Fabrizio Dallari, 2022. "Heading for Tomorrow: Resilience Strategies for Post-COVID-19 Grocery Supply Chains," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    15. Li, Yuan & Chen, Haoxun & Prins, Christian, 2016. "Adaptive large neighborhood search for the pickup and delivery problem with time windows, profits, and reserved requests," European Journal of Operational Research, Elsevier, vol. 252(1), pages 27-38.
    16. Wang, Qiang & Wu, Jie & Zhao, Nenggui, 2022. "Optimal operational policies of a dual-channel supply chain considering return service," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 199(C), pages 414-437.
    17. Haas, Jonas & Seiter, Mischa, 2020. "Selecting the right platform - The perspective of logistics service providers," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Data Science and Innovation in Supply Chain Management: How Data Transforms the Value Chain. Proceedings of the Hamburg International Conference of Lo, volume 29, pages 875-909, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    18. Lee, Chungseung & Park, Kun Soo, 2016. "Inventory and transshipment decisions in the rationing game under capacity uncertainty," Omega, Elsevier, vol. 65(C), pages 82-97.
    19. Serel, Doğan A., 2017. "A single-period stocking and pricing problem involving stochastic emergency supply," International Journal of Production Economics, Elsevier, vol. 185(C), pages 180-195.
    20. Masaya Ota & Yusuke Sakata & Takao Iijima, 2019. "Fair trade information eliminates the positive brand effect: product choice behavior in Japan," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 4(1), pages 1-14, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:10:p:5683-:d:557556. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.