Supply chain coordination in 2-stage-ordering-productionsystembased on demand forecasting update  

Oleh:

Kusukawa, Etsuko

Jenis: Article from Proceeding
Dalam koleksi: The 14th Asia Pacific Industrial Engineering and Management Systems Conference (APIEMS), 3-6 December 2013 Cebu, Philippines, page 1-8.
Topik: 2-Stage-ordering-production system; Demand forecasting update; Supply chain coordination
Fulltext: 1008.pdf (361.11KB)

Isi artikel

It is necessary for a retailer to improve responsiveness to uncertain customer demand and reduce cost across supply chain for product sales. However, the greater the uncertainty in demand fluctuations becomes, the more difficult the retailer plans procurement and inventory of product before the selling period. In this study, we first present an optimal operation for2-stage-ordering-production system consisting of a retailer and a manufacturer. In our model,we suppose Mode 1 with a long lead time, cheap wholesale price and cheap production cost at 1t , and Mode 2 with a short lead time, high wholesale price and high production cost at 2t . First, at 1 t , the retailer determines the optimal first order quantity *1Q , the optimal advertising cost *1a and the optimal retail price *1p of a single product, based on demand forecasting estimated at 1 t . The manufacturer produces the quantity * 1 Q of product. Next, at 2 t the retailer updates the demand forecastingat 2 t . If the retailer finds that * 1 Q is dissatisfies the demand based on demand forecasting updated at 2 t , the retailer not only determines the optimal second ordering quantity *2Q based on * 1 Q , but also adjustsoptimally the advertising costand the retail price to *2a and *2p .Here, we adopt two decisions for order quantity, retail price and advertisingcost. One is made under a decentralized supply chain(DSC) whose objective is to maximize the retailer’s profit. The other is made under an integrated supply chain(ISC) whose objective is to maximize the whole system's profit. In the numerical analysis, we compare the results of the optimal decisions under DSC with those under ISC. Moreover, we discuss supply chain coordination to promote the shift to the decisions under ISC. Wecoordinate the unit wholesale prices at each order time. We adjust theunit wholesale price at each order time based on Nash Bargaining solutions.

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