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Coordination Scheme for Restructuring Business Operation of the Single Period Newsvendor Problem
Joint Authors
Huang, I-Ping
Chyu, Chiuh-Cheng
Source
Mathematical Problems in Engineering
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-11, 11 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-11-26
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Abstract EN
This paper presents a coordination scheme for a single period newsvendor problem when both supplier and retailer of the supply chain agree to change the business operation from a market decision power sharing system (Model 1) to a unique decision maker system (Model 2).
The supplier is assumed to be a risk-averse decision maker and he will undertake the product quality risk in both models.
Model 1 is game theoretic, where the supplier controls the wholesale price, but the retailer controls the order quantity and market price.
The bargaining process ends when the supplier has found a wholesale price that maximizes the value of his sales revenue minus the product quality cost.
Model 2 is a centralized system where the supplier possesses all decision powers of the market.
In general, Model 2 will generate higher total revenue than Model 1.
The aim of this research is to propose a satisfying compromise based on consignment policy to resolve the revenue-sharing conflict in Model 2 due to the additional revenue.
An example is provided to illustrate the two models and the proposed coordination scheme, along with managerial insights on the models’ benefits.
The impacts of several parameters on the scheme are also presented and discussed.
American Psychological Association (APA)
Chyu, Chiuh-Cheng& Huang, I-Ping. 2013. Coordination Scheme for Restructuring Business Operation of the Single Period Newsvendor Problem. Mathematical Problems in Engineering،Vol. 2013, no. 2013, pp.1-11.
https://search.emarefa.net/detail/BIM-1031795
Modern Language Association (MLA)
Chyu, Chiuh-Cheng& Huang, I-Ping. Coordination Scheme for Restructuring Business Operation of the Single Period Newsvendor Problem. Mathematical Problems in Engineering No. 2013 (2013), pp.1-11.
https://search.emarefa.net/detail/BIM-1031795
American Medical Association (AMA)
Chyu, Chiuh-Cheng& Huang, I-Ping. Coordination Scheme for Restructuring Business Operation of the Single Period Newsvendor Problem. Mathematical Problems in Engineering. 2013. Vol. 2013, no. 2013, pp.1-11.
https://search.emarefa.net/detail/BIM-1031795
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1031795