Highlights We present an inventory control model for a supply chain of deteriorating items. We adopt the probabilistic demand and deterioration functions. We develop and compare integrated and non-integrated inventory control policy. We study the impact of the compensation policy in the supply chain coordination. We perform sensitivity analysis and simulation to illustrate the model’s results.
Abstract This study addresses the problem of inventory control and pricing in a three-echelon supply chain (SC) with deteriorating items. It is assumed that deterioration and demand and functions of the manufacturer and retailer are probabilistic, and relationship between SC members is according to the “delayed equal-sized shipment inventory policy”. One integrated policy and three non-integrated ones are formulated, and the conditions to obtain the solution are discussed. Through the simulation and sensitivity analysis on an extended numerical example, some managerial implications are presented. Moreover, a compensation policy is used for evaluation of the benefits and losses related to non-integrated policies.
The inventory and pricing decisions in a three-echelon supply chain of deteriorating items under probabilistic environment
2019-07-15
21 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch