Limited quantity flexibility in a decentralized supply chain

Download

index.pdf

Date

2010

Author

Karakaya, Selçuk

Metadata

Show full item record

Item Usage Stats

200
views

93
downloads

In this study, we analyze a decentralized supply chain with a single retailer and a single manufacturer where the retailer sells two products in a single period. The products offered by the retailer consist of families of closely related products, which differ from each other in terms of a limited number of features only. The retailer places initial orders based on preliminary demand forecasts at the beginning of the period and has an opportunity to modify his initial order after receiving perfect demand information. However, the final orders of the retailer are constrained by his initial orders. Furthermore, the manufacturer is obligated to fill the retailer’s final order for each product. The manufacturer has two options for procurement. The first procurement option is regular delivery at the beginning of the period, after the initial orders of the retailer. The next one is expedited delivery, after the updated orders of the retailer are received. The expedited delivery is more expensive than regular. In this setting, our objective is to present an analytical model for this contract and characterize the optimal policies for the retailer and the manufacturer. We analyze three different levels of order adjustment flexibility settings: (i) no order adjustment, (ii) unlimited order adjustment and (iii) limited order adjustment.

Subject Keywords

Industrial engineering.

URI

http://etd.lib.metu.edu.tr/upload/3/12611609/index.pdf
https://hdl.handle.net/11511/19444

Collections

Graduate School of Natural and Applied Sciences, Thesis

Suggestions

OpenMETU
Core

An integrated inventory control and vehicle routing problem Solyalı, Oğuz; Süral, Haldun; Department of Industrial Engineering (2005) In this study, we consider a logistics system, in which a single supplier delivers a product to multiple retailers over a finite time horizon. Supplier decides on the amount to order in each period and services retailers facing deterministic dynamic demand via a fleet of vehicles having limited capacity. Each retailer has specific minimum and maximum levels of inventory in an order-up-to level inventory policy setting. The problem is to simultaneously determine the quantity of product to order to the suppli...
Analysis of a two-echelon multi-item inventory system with postponement Eryılmaz, Hande; Meral, Fatma Sedef; Department of Industrial Engineering (2010) Increased product proliferation and global competition are forcing companies within the supply chain to adopt new strategies. Postponement is an effective strategy that allows companies to be agile and cost effective in dealing with the dynamics of global supply chains. Postponement centres around delaying activities in the supply chain until real information about the market is available, which reduces the complexity and uncertainty of dealing with a proliferation of products. A two-echelon divergent suppl...
Periodic-review inventory systems with exogenous and endogenous replenishment lead times Aşcı, Murtaza; Avşar, Zeynep Müge; Department of Industrial Engineering (2007) In this thesis, two-echelon systems with exogenous and endogenous lead times are studied for the orders placed by the retailer(s) from the supplier. The retailer(s) employ periodic-review base-stock policy, namely (R,S) policy. For the case the demand during review period is i.i.d. and the probability distribution is Normal for each review period, a new method is proposed for exogenous lead time case under stationary policy. The results of the proposed method is then compared with the results of the existin...
Optimal pricing and production decisions in reusable container systems Atamer, Büşra; Bakal, İsmail Serdar; Department of Industrial Engineering (2010) In this study, we focus on pricing and production decisions in reusable container systems with stochastic demand. We consider a producer that sells a single product to the customers in reusable containers with two supply options: (i) brand-new containers, (ii) returned containers from customers. Customers purchasing the products may return the containers to the producer to receive a deposit price. The return quantity depends on both customer demand and the deposit price determined by the producer. Hence, th...
Integration of supplier process : supplier segmentation, supplier selection and order allocation in a case company Özalp, Yeşim; Köksal, Gülser; Department of Industrial Engineering (2005) This thesis attempts to integrate the three supplier processes- supplier segmentation, supplier selection/evaluation and order allocation- based on a case study of a white goods manufacturer. These processes are dealt with in a hierarchical manner, where the decisions at an earlier stage (supplier segmentation) may affect on the results of later stages (supplier selection/evaluation and order allocation). Based on a wide set of variables gathered from the supplier segmentation literature and from the framew...

Citation Formats

S. Karakaya, “Limited quantity flexibility in a decentralized supply chain,” M.S. - Master of Science, Middle East Technical University, 2010.