Joint quantity flexibility for multiple products in a decentralized supply chain

Date

2013-02-01

Author

Karakaya, Selcuk
Bakal, İsmail Serdar

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

262
views

0
downloads

In this study, we analyze a decentralized supply chain with a single retailer and a single manufacturer where the retailer sells multiple products in a single period. The products differ 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 its initial order after receiving perfect demand information. However, the final orders of the retailer are constrained by its initial orders. 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 are received. In this setting, our objective is to characterize the optimal policies for the retailer and the manufacturer, and assess the benefits of flexibility.

Subject Keywords

Supply contract, Quantity flexibility, Supply chain management

URI

https://hdl.handle.net/11511/47122

Journal

COMPUTERS & INDUSTRIAL ENGINEERING

DOI

https://doi.org/10.1016/j.cie.2012.12.004

Collections

Department of Industrial Engineering, Article

Suggestions

OpenMETU
Core

Competition of manufacturers for retailer shelf space Diler, Betül; Karaer, Özgen; Bakal, İsmail Serdar; Department of Industrial Engineering (2016) In this thesis, we consider two partially substitutable products sold through a twoechelon supply chain, consisting of two suppliers and one retailer. We assume a random aggregate demand that is split between the two products, so the products have separated random demand as long as both are available. In case of a stockout in one of the products, that product’s demand can spill over to the competing product, which causes a correlation between the final demand of the products and their stocking quantities. T...
Joint quantity flexibility under market information update Oskay, Mine Gülden; Bakal, İsmail Serdar; Department of Industrial Engineering (2013) In this study, we consider a decentralized supply chain consisting of a single retailer and a single manufacturer who manufacture two products in a given single period. The retailer commits to purchase an aggregate order quantity for the products at the beginning of the period before information on the market condition is revealed. Accordingly, the manufacturer then determines its initial production quantities for the products. Once market condition is revealed the retailer allocates its initial order to in...
Price competition between manufacturers selling to a common retailer under stock-out-based substitution Kılıç, Betül Diler; Karaer, Özgen; Bakal, İsmail Serdar (2022-12-01) We consider two partially substitutable products sold through a two-echelon supply chain, consisting of two manufacturers and one retailer. In case of a stock-out in one of the products, that product's demand can spill over to the competing product. We analyze the equilibrium pricing decisions of the manufacturers and ordering decision of the retailer in a three stage dynamic game for a single period. We investigate the effect of spillover rates on equilibrium decisions. We also evaluate the impact of spill...
Limited quantity flexibility in a decentralized supply chain Karakaya, Selçuk; Bakal, İsmail Serdar; Department of Industrial Engineering (2010) 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 in...
Order timing strategies in a single-supplier, multi-retailer system Bakal, İsmail Serdar (2010-01-01) The timing of retailer order placement is an important factor in supply chain performance in systems with uncertain end-customer demands. Retailers often prefer short order lead times, which permits the resolution of demand uncertainty prior to order placement, and reduces the risks associated with excess inventory. Suppliers, in contrast, prefer long lead times, in order to match supply output with retailer demand. These conflicting preferences create tension between a supplier and retailers regarding orde...

Citation Formats

S. Karakaya and İ. S. Bakal, “Joint quantity flexibility for multiple products in a decentralized supply chain,” COMPUTERS & INDUSTRIAL ENGINEERING, pp. 696–707, 2013, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/47122.