EFFECT OF A LINEAR PRICE-SENSITIVE DEMAND CURVE ON THE MULTI-ECHELON SUPPLY CHAIN'S EFFICIENCY

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Darzi Ramandi Milad; MASHREGHI HAMID; Aliahmadi Seyed Zeinab

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Seminar Paper

Paper Information

Seminar: INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING
Year:2017 | Issue:13

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Title

EFFECT OF A LINEAR PRICE-SENSITIVE DEMAND CURVE ON THE MULTI-ECHELON SUPPLY CHAIN'S EFFICIENCY

Author(s)

Darzi Ramandi Milad | MASHREGHI HAMID | Aliahmadi Seyed Zeinab

Keywords

SUPPLY CHAIN OPTIMIZATION

N-ECHELON SUPPLY CHAIN

UNCONSTRAINT OPTIMIZATION

WHOLESALE PRICE CONTRACT

PRICING

Abstract

IN MULTI-ECHELON SUPPLY CHAINS, THE PRODUCT MADE BY MANUFACTURER WITH INITIAL PRODUCTION COSTS. THEN TO REACH THE END CONSUMER, IT WILL PASS FROM DIFFERENT LEVELS OF THE SUPPLY CHAIN. EACH MEMBER OF THE CHAIN IS IN MUTUAL COMMUNICATION WITH UPSTREAM AND DOWNSTREAM. THEREFORE, IN ORDER TO ACHIEVE THE BEST QUALITY AND THE LOWEST PRODUCTION COST, A LARGE NUMBER OF COMPANIES HAS CONCURRENT COLLABORATION WITH MANY SUPPLIERS. IN THIS PAPER, WE CONSIDER A WHOLESALE-PRICE CONTRACT WHERE DEMAND OF THE PRODUCT IS DEPENDENT TO SELLING PRICE WITH LINEAR DEMAND CURVE. WE OBTAIN THE AMOUNT OF OPTIMAL PROFIT FOR EACH MEMBER OF TWO-ECHELON AND THREE-ECHELON SUPPLY CHAIN AND CONSEQUENTLY DETERMINE THE OPTIMAL ORDERING PRICING DECISIONS FOR PARTNERS. FINALLY, IT IS PROVED THAT BY INCREASING THE NUMBER OF ECHELONS UNDER WHOLESALE PRICE CONTRACT, THE CHANNEL'S EFFICIENCY DECREASES DRAMATICALLY.

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APA: Copy

Darzi Ramandi, Milad, MASHREGHI, HAMID, & Aliahmadi, Seyed Zeinab. (2017). EFFECT OF A LINEAR PRICE-SENSITIVE DEMAND CURVE ON THE MULTI-ECHELON SUPPLY CHAIN'S EFFICIENCY. INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING. SID. https://sid.ir/paper/938191/en

Vancouver: Copy

Darzi Ramandi Milad, MASHREGHI HAMID, Aliahmadi Seyed Zeinab. EFFECT OF A LINEAR PRICE-SENSITIVE DEMAND CURVE ON THE MULTI-ECHELON SUPPLY CHAIN'S EFFICIENCY. 2017. Available from: https://sid.ir/paper/938191/en

IEEE: Copy

Milad Darzi Ramandi, HAMID MASHREGHI, and Seyed Zeinab Aliahmadi, “EFFECT OF A LINEAR PRICE-SENSITIVE DEMAND CURVE ON THE MULTI-ECHELON SUPPLY CHAIN'S EFFICIENCY,” presented at the INTERNATIONAL CONFERENCE ON INDUSTRIAL ENGINEERING. 2017, [Online]. Available: https://sid.ir/paper/938191/en

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