Ordering and pricing policies in a manufacturing and distribution supply chain for fashion products
Ordering and pricing policies in a manufacturing and distribution supply chain for fashion products
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DOI:
10.1016/j.ijpe.2007.06.010
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发表时间:
2008-08
影响因子:
12
通讯作者:
S. Webster;Z. Weng
中科院分区:
文献类型:
--
作者:
S. Webster;Z. Weng
In the paper, we develop a model of manufacturing and distribution supply chains that are operating to meet price-sensitive random demand for products with short life cycles such as fashion products. Two specific scenarios are considered. The manufacturer-controlled scenario is one where the distributor shares price-sensitive random demand with the manufacturer, and the manufacturer controls the supply chain stocking decisions and bears the risk of overstocking costs. The distributor-controlled scenario works in the opposite direction. Prevailing wisdom suggests that the manufacturer should control supply chain decisions (e.g., via vendor-managed inventory). Our results indicate that such an arrangement is against the interest of a distributor selling short life-cycle products. Furthermore, we find that the total supply chain profit is generally higher when the distributor controls the supply chain stocking decisions and bears the risk of overstocking costs.