Optimal Order Strategy in Uncertain Demands with Free Shipping Option
Joint Authors
Li, Ming
Zhang, Teng
Rong, Xiao-Xia
Meng, Qing-Chun
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-6, 6 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-05-25
Country of Publication
Egypt
No. of Pages
6
Main Subjects
Abstract EN
Free shipping with conditions has become one of the most effective marketing tools; more and more companies especially e-business companies prefer to offer free shipping to buyers whenever their orders exceed the minimum quantity specified by them.
But in practice, the demands of buyers are uncertain, which are affected by weather, season, and many other factors.
Firstly, we model the centralization ordering problem of retailers who face stochastic demands when suppliers offer free shipping, in which limited distributional information such as known mean, support, and some deviation measures of the random data is needed only.
Then, based on the linear decision rule mainly for stochastic programming, we analyze the optimal order strategies of retailers and discuss the approximate solution.
Further, we present the core allocation between all retailers via dual and cooperative game theory.
The existence of core shows that each retailer is pleased to cooperate with others in the centralization problem.
Finally, a numerical example is implemented to discuss how uncertain data and parameters affect the optimal solution.
American Psychological Association (APA)
Meng, Qing-Chun& Zhang, Teng& Li, Ming& Rong, Xiao-Xia. 2014. Optimal Order Strategy in Uncertain Demands with Free Shipping Option. Discrete Dynamics in Nature and Society،Vol. 2014, no. 2014, pp.1-6.
https://search.emarefa.net/detail/BIM-482200
Modern Language Association (MLA)
Meng, Qing-Chun…[et al.]. Optimal Order Strategy in Uncertain Demands with Free Shipping Option. Discrete Dynamics in Nature and Society No. 2014 (2014), pp.1-6.
https://search.emarefa.net/detail/BIM-482200
American Medical Association (AMA)
Meng, Qing-Chun& Zhang, Teng& Li, Ming& Rong, Xiao-Xia. Optimal Order Strategy in Uncertain Demands with Free Shipping Option. Discrete Dynamics in Nature and Society. 2014. Vol. 2014, no. 2014, pp.1-6.
https://search.emarefa.net/detail/BIM-482200
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-482200