IDEAS home Printed from https://ideas.repec.org/a/ids/ijmore/v8y2016i4p406-423.html
   My bibliography  Save this article

Coordinating a two-echelon supply chain with price and inventory level dependent demand, time dependent holding cost, and partial backlogging

Author

Listed:
  • B.C. Giri
  • S. Bardhan

Abstract

Coordination between two participating entities in a supply chain is very essential to sustain in the highly competitive business environment. This paper attempts to coordinate a single manufacturer single retailer supply chain in which the end customers' demand is assumed to be dependent on the retail price as well as instantaneous on-hand inventory level of the retailer. Both the production rate of the manufacturer and the holding cost of the retailer are assumed to vary with time. Shortages are allowed to occur and are partially backlogged. The wholesale price only contract is implemented to have insights of the retailer's individual strategy. The centralised model is studied as the benchmark case, and a revenue sharing contract is taken as coordination mechanism, aiming at enhancing the total average profit of the chain as well as paying both the channel members better off. A numerical example is given to illustrate the developed model.

Suggested Citation

  • B.C. Giri & S. Bardhan, 2016. "Coordinating a two-echelon supply chain with price and inventory level dependent demand, time dependent holding cost, and partial backlogging," International Journal of Mathematics in Operational Research, Inderscience Enterprises Ltd, vol. 8(4), pages 406-423.
    • Handle: RePEc:ids:ijmore:v:8:y:2016:i:4:p:406-423
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=76782
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:ids:ijmore:v:8:y:2016:i:4:p:406-423. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=320 .

    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.