COORDINATION OF A TWO-ECHELON SUPPLY CHAIN UNDER DEMAND UNCERTAINTY USING REVISED SALES REBATE WITH SIMULTANEOUS PUNISHMENT AND REBATE APPROACHES

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ASLNAJAFI JAVAD; HEYDARI JAFAR

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Journal: Advances in Industrial Engineering Year:2017 | Volume:51 | Issue:1 Page(s): 15-27

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Title

COORDINATION OF A TWO-ECHELON SUPPLY CHAIN UNDER DEMAND UNCERTAINTY USING REVISED SALES REBATE WITH SIMULTANEOUS PUNISHMENT AND REBATE APPROACHES

Author(s)

ASLNAJAFI JAVAD | HEYDARI JAFAR | Issue Writer Certificate

Keywords

DECENTRALIZED DECISION-MAKINGQ1

SALES REBATE AND PUNISHMENTQ1

SUPPLY CHAIN COORDINATIONQ1

TARGET VALUEQ1

Abstract

This paper investigates coordination of a decentralized two-echelon supply chain with a single supplier and retailer with uncertain market demand. The presented model pursuits to coordinate the decisions related to the retailer's order quantity that in addition to increasing the profit of the decentralized supply chain, grow the profit of both two members of the chain to the amount greater than the decentralized mode. The main purpose of the model is to achieve maximum profit of the whole supply chain, beside the provision of incentives to satisfy the chain members to withdraw the decentralized decisions and join the contract. Considering the studied supply chain features, a revised sales rebate contract is applied in which both punishment and rebate approaches have been adopted simultaneously. Furthermore, a new approach of determining the contract's parameters based on the retailer and supplier viewpoints is developed. Finally, some numerical studies are conducted and a sensitivity analysis is done on the parameter of demand variations. Results show that the presented model has the ability of coordinating the ordering quantity in the supply chain.

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APA: Copy

ASLNAJAFI, JAVAD, & HEYDARI, JAFAR. (2017). COORDINATION OF A TWO-ECHELON SUPPLY CHAIN UNDER DEMAND UNCERTAINTY USING REVISED SALES REBATE WITH SIMULTANEOUS PUNISHMENT AND REBATE APPROACHES. ADVANCES IN INDUSTRIAL ENGINEERING (JOURNAL OF INDUSTRIAL ENGINEERING), 51(1 ), 15-27. SID. https://sid.ir/paper/166447/en

Vancouver: Copy

ASLNAJAFI JAVAD, HEYDARI JAFAR. COORDINATION OF A TWO-ECHELON SUPPLY CHAIN UNDER DEMAND UNCERTAINTY USING REVISED SALES REBATE WITH SIMULTANEOUS PUNISHMENT AND REBATE APPROACHES. ADVANCES IN INDUSTRIAL ENGINEERING (JOURNAL OF INDUSTRIAL ENGINEERING)[Internet]. 2017;51(1 ):15-27. Available from: https://sid.ir/paper/166447/en

IEEE: Copy

JAVAD ASLNAJAFI, and JAFAR HEYDARI, “COORDINATION OF A TWO-ECHELON SUPPLY CHAIN UNDER DEMAND UNCERTAINTY USING REVISED SALES REBATE WITH SIMULTANEOUS PUNISHMENT AND REBATE APPROACHES,” ADVANCES IN INDUSTRIAL ENGINEERING (JOURNAL OF INDUSTRIAL ENGINEERING), vol. 51, no. 1 , pp. 15–27, 2017, [Online]. Available: https://sid.ir/paper/166447/en

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