Integrated supply chain of supplier and retailer for stochastic demand

This article deals with a two-stage supply chain comprising of the retailer and the supplier in which demand of the end customers follows news-vendor type demand. The setup costs, purchasing and procurement costs are dependent on lot sizes. The mathematical models for continuous and discrete variabl...

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Published inMathematical modelling and analysis Vol. 23; no. 4; pp. 582 - 595
Main Authors Tiwari, Sunil, Jaggi, Chandra K., Sana, Shib Sankar
Format Journal Article
LanguageEnglish
Published Vilnius Vilnius Gediminas Technical University 09.10.2018
Subjects
buyback
Continuity (mathematics)
Demand
distribution
distribution free
Industrial suppliers
Mathematical models
Procurement
Retail trade
Stochastic models
Suppliers
supply chain
Supply chains
distribution free
supply chain
distribution
buyback
Online AccessGet full text
ISSN1392-6292
1648-3510
1648-3510
DOI10.3846/mma.2018.035

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Abstract This article deals with a two-stage supply chain comprising of the retailer and the supplier in which demand of the end customers follows news-vendor type demand. The setup costs, purchasing and procurement costs are dependent on lot sizes. The mathematical models for continuous and discrete variables of the chain are analyzed mathematically to maximize the expected average profits of individual and the collaborating systems. As our study suggests that collaborating system is always better than the decentralized system for known distribution cases, we also optimize the joint profit of the retailer and the supplier for a distribution free case which is implemented for unknown distribution. Finally, numerical examples of the demand patterns are illustrated to justify the proposed model. The punctual research directions from the proposed model are also provided in the conclusion section.
AbstractList This article deals with a two-stage supply chain comprising of the retailer and the supplier in which demand of the end customers follows news-vendor type demand. The setup costs, purchasing and procurement costs are dependent on lot sizes. The mathematical models for continuous and discrete variables of the chain are analyzed mathematically to maximize the expected average profits of individual and the collaborating systems. As our study suggests that collaborating system is always better than the decentralized system for known distribution cases, we also optimize the joint profit of the retailer and the supplier for a distribution free case which is implemented for unknown distribution. Finally, numerical examples of the demand patterns are illustrated to justify the proposed model. The punctual research directions from the proposed model are also provided in the conclusion section.
This article deals with a two-stage supply chain comprising of the retailer and the supplier in which demand of the end customers follows news-vendor type demand. The setup costs, purchasing and procurement costs are dependent on lot sizes. The mathematical models for continuous and discrete variables of the chain are analyzed mathematically to maximize the expected average profits of individual and the collaborating systems. As our study suggests that collaborating system is always better than the decentralized system for known distribution cases, we also optimize the joint profit of the retailer and the supplier for a distribution free case which is implemented for unknown distribution. Finally, numerical examples of the demand patterns are illustrated to justify the proposed model. The punctual research directions from the proposed model are also provided in the conclusion section.Keywords: supply chain, buyback, distribution, distribution free.AMS Subject Classification: 90B05.
Audience Academic
Author Jaggi, Chandra K.
Tiwari, Sunil
Sana, Shib Sankar
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  organization: Kishore Bharati Bhagini Nivedita College, 700060 Kolkata, India; Department of Mathematics, Bhangar Mahavidyalaya, Bhangar, India
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crossref_primary_10_1108_IMDS_03_2020_0131
crossref_primary_10_1108_JM2_02_2019_0030
crossref_primary_10_1016_j_cie_2023_109002
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SubjectTerms buyback
Continuity (mathematics)
Demand
distribution
distribution free
Industrial suppliers
Mathematical models
Procurement
Retail trade
Stochastic models
Suppliers
supply chain
Supply chains
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Title Integrated supply chain of supplier and retailer for stochastic demand
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