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Information Journal Paper

Title

A TWO-LEVEL DISCOUNT MODEL FOR COORDINATING A DECENTRALIZED SUPPLY CHAIN CONSIDERING STOCHASTIC PRICE-SENSITIVE DEMAND

Pages

  531-542

Abstract

 In this paper, a discount model is proposed to coordinate pricing and ordering decisions in a two-echelon supply chain (SC). Demand is stochastic and price sensitive while lead times are fixed. Decentralized decision making where downstream decides on selling price and order size is investigated. Then, joint pricing and ordering decisions are extracted where both members act as a single entity aim to maximize whole SC profit. Finally, a coordination mechanism based on quantity discount is proposed to coordinate both pricing and ordering decisions simultaneously.The proposed TWO-LEVEL DISCOUNT policy can be characterized from two aspects: (1) marketing viewpoint: a retail price discount to increase the demand, and (2) operations management viewpoint: a wholesale price discount to induce the retailer to adjust its order quantity and selling price jointly. Results of numerical experiments demonstrate that the proposed policy is suitable to coordinate SC and improve the profitability of SC as well as all SC members in comparison with decentralized decision making.

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    APA: Copy

    HEYDARI, JAFAR, & NOROUZINASAB, YOUSEF. (2015). A TWO-LEVEL DISCOUNT MODEL FOR COORDINATING A DECENTRALIZED SUPPLY CHAIN CONSIDERING STOCHASTIC PRICE-SENSITIVE DEMAND. JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL, 11(4), 531-542. SID. https://sid.ir/paper/310034/en

    Vancouver: Copy

    HEYDARI JAFAR, NOROUZINASAB YOUSEF. A TWO-LEVEL DISCOUNT MODEL FOR COORDINATING A DECENTRALIZED SUPPLY CHAIN CONSIDERING STOCHASTIC PRICE-SENSITIVE DEMAND. JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL[Internet]. 2015;11(4):531-542. Available from: https://sid.ir/paper/310034/en

    IEEE: Copy

    JAFAR HEYDARI, and YOUSEF NOROUZINASAB, “A TWO-LEVEL DISCOUNT MODEL FOR COORDINATING A DECENTRALIZED SUPPLY CHAIN CONSIDERING STOCHASTIC PRICE-SENSITIVE DEMAND,” JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL, vol. 11, no. 4, pp. 531–542, 2015, [Online]. Available: https://sid.ir/paper/310034/en

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