Download or read book A Stochastic Process Study of Two echelon Supply Chain with Bulky Demand Process Incorporating Cost Sharing Coordination Strategies written by and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This research considers a single-item two-echelon supply chain facing a sequence of stochastic bulky customer demand with random order inter-arrival time and random demand size. The demand process is a general renewal process and the cost functions for both parties involve the enewal function and its integral. The complexity of the general renewal function causes the computational intractability in deciding the optimal order quantities, so approximations for the renewal function and its integral are introduced to address the computational complexity. Asymptotic expansions are commonly used in the literature to approximate the renewal function and its integral when the optimal decisions are relatively large compared to the mean of the inter-renewal time. However, the optimal policies do not necessarily fall in the asymptotic region. So the use of symptotic expansions to approximate the renewal function and its integral in the cost functions may cause significant errors in decision making. To overcome the inaccuracy of the asymptotic approximation, this research proposes a modified approximation. The proposed approximation provides closed form functions for the renewal function and its integral which could be applied to various optimization problems such as inventory planning, supply chain management, reliability and maintenance. The proposed approximations are tested with commonly used distributions and applied to an application in the literature, yielding good performance. By applying the proposed approximation method to the supply chain cost functions, this research obtains the optimal policies for the decentralized and the centralized cases. The numerical results provide insights into the cost savings realized by the centralization of the supply chain compared to the decentralized case. Furthermore, this research investigates coordination schemes for the decentralized case to improve the utilities of parties. A cost sharing mechanism in which the vendor offers the retailer a contract as a compensation of implementing vendordesired inventory policy is investigated. The sharing could be realized by bearing part of the retailer's inventory holding cost or fixed cost. The contract is designed to minimize the vendors cost while satisfying the individual rationality of the retailer. Other forms of coordination mechanisms, such as the side payment and delayed payment, are also discussed.

Download or read book Coordination Under Unknown Demand Distribution written by Shi Chen and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the literature on supply chain management (SCM), the multi-echelon stochastic inventory models with known demand distributions have played a fundamental role for developing firms' collaborative strategies, including the optimal policy to maximize efficiency of the centralized supply chain (the ``first-best” policy) and contract design in the decentralized supply chain such that the self-interested parties are incentivized to adopt the first-best policy (supply chain is ``coordinated"). In this work, we extend the classic two-echelon inventory problem to an online setting with an unknown demand distribution and then re-examine the optimal inventory control and supply chain coordination problems. The new setting brings two novel challenges. (1) Since the upstream firm only observes orders from the downstream firm, it does not necessarily receive the true demand information, which is aggravated by the online setting as the downstream firm may experiment with different policies facing the unknown demand distribution. (2) The above issue is compounded by the complex inventory interactions due to the multi-echelon nature of the system, as the downstream firm's inventory level can be impacted by the upstream firm's shortages. For the centralized system, we design algorithms based on Online Newton Step with the low-switching (``lazy-update”) property to achieve convergence to the first-best policy. For the decentralized system, our algorithms, together with a protocol for learning the optimal contract parameter value, also achieve favorable guarantees for individual regret and convergence to the first-best decisions such that the supply chain is coordinated.

Download or read book Analysis and Algorithms for Service Parts Supply Chains written by John A. Muckstadt and published by Springer Science & Business Media. This book was released on 2004-12-07 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt: * Provides a broad overview of modeling approaches and solution methodologies for addressing inventory problems, particularly the management of high cost, low demand rate service parts found in multi-echelon settings * The text may be used in a variety of courses for first-year graduate students or senior undergraduates, or as a reference for researchers and practitioners * A background in stochastic processes and optimization is assumed

Download or read book Risk Analysis in Stochastic Supply Chains written by Tsan-Ming Choi and published by Springer Science & Business Media. This book was released on 2012-06-05 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: Risk analysis is crucial in stochastic supply chain models. Over the past few years, the pace has quickened for research attempting to explore risk analysis issues in supply chain management problems, while the majority of recent papers focus on conceptual framework or computational numerical analysis. Pioneered by Nobel laureate Markowitz in the 1950s, the mean-risk (MR) formulation became a fundamental theory for risk management in finance. Despite the significance and popularity of MR-related approaches in finance, their applications in studying multi-echelon supply chain management problems have only been seriously explored in recent years. While the MR approach has already been shown to be useful in conducting risk analysis in stochastic supply chain models, there is no comprehensive reference source that provides the state-of-the-art findings on this important model for supply chain management. Thus it is significant to have a book that reviews and extends the MR related works for supply chain risk analysis. This book is organized into five chapters. Chapter 1 introduces the topic, offers a timely review of various related areas, and explains why the MR approach is important for conducting supply chain risk analysis. Chapter 2 examines the single period inventory model with the mean-variance and mean-semi-deviation approaches. Extensive discussions on the efficient frontiers are also reported. Chapter 3 explores the infinite horizon multi-period inventory model with a mean-variance approach. Chapter 4 investigates the supply chain coordination problem with a versatile target sales rebate contract and a risk averse retailer possessing the mean-variance optimization objective. Chapter 5 concludes the book and discusses various promising future research directions and extensions. Every chapter can be taken as a self-contained article, and the notation within each chapter is consistently employed.

Download or read book Sustainable Logistics and Production in Industry 4 0 written by Katarzyna Grzybowska and published by Springer Nature. This book was released on 2019-11-30 with total page 298 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book proposes essential methods, models, and case studies for Sustainable Logistics and Production in Industry 4.0. In addition to identifying and discussing various challenges and future prospects, it also features numerous case studies and quantitative research from different sectors. The authors (which include academics and managers) present insightful tips on the technical, organizational and social aspects of implementing Sustainable Logistics and Production in Industry 4.0. In today’s world, changes are coming faster and more unpredictably. Production is becoming more automated, computerized and complex. In short, Industry 4.0 is creating many new opportunities, but at the same time several new challenges. This book offers a valuable resource for all academics and practitioners who want to deepen their knowledge of Sustainable Logistics and Production in Industry 4.0.

Download or read book Tailored Supply Chain Decision Making Under Price Sensitive Stochastic Demand and Delivery Uncertainty written by Saibal Ray and published by . This book was released on 2007 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we study a serial two-echelon supply chain selling a procure-to-stock product in a price-sensitive market. Our analytical modelling framework incorporates optimal pricing and stocking decisions for both echelons in the presence of stochastic demand and random delivery times. We focus on understanding how these decisions for the chain are affected by its management paradigm (centralized or decentralized), and its business characteristics - price sensitivity, demand uncertainty, and delivery time variability. A novel combination of transformations enables us to analyze the framework and determine the unique optimal choices for centralized and wholesale price-based decentralized supply chains. More detailed investigation reveals that, in general, the business characteristics influence both the behavior and the optimal values of the decision variables, while the management paradigm primarily governs the optimal values. We illustrate the significance of these results in terms of how managers should tailor their decisions to align with their business requirements. Subsequently, comparison of the optimal profits between the channel partners and the management paradigms provides implications for decentralization strategy. A decentralized chain is most inefficient for moderately price-sensitive customers and uncertain environments, but is relatively more effective when dealing with mature products. We propose a contracting scheme that can improve the decentralized chain profit in reliable delivery time settings. The salient modelling insight of this paper is that ignoring the randomness of delivery time trivializes the interaction between pricing and stocking decisions. On the other hand, from a managerial viewpoint, we establish that optimal pricing policies provide the means to increase revenue and also act as strategic tools for tackling uncertainty.

Download or read book Stochastic Modeling and Optimization of Manufacturing Systems and Supply Chains written by J. George Shanthikumar and published by Springer Science & Business Media. This book was released on 2003-07-31 with total page 436 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Editors have taken the occasion of Professor John A. Buzacott's retirement as a motivating event to develop this volume. The objectives of Stochastic Modeling And Optimization Of Manufacturing Systems And Supply Chains is to both honor John Buzacott's achievements and to publish a set of well-written chapters on highly timely topics in the field of manufacturing and supply chain management. The book is organized into two parts. The first part focuses on aspects of manufacturing systems modeling. This part includes chapters on the evolution of manufacturing systems modeling, queuing network models and related software technologies, two-moment approximation for fork/join queues, and asymptotic optimality of a scheduling policy. (Midwest).

Download or read book Stochastic Programming in Supply Chain Risk Management written by Tadeusz Sawik and published by Springer Nature. This book was released on with total page 370 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Modeling Payment Timing in Multiechelon Inventory Systems with Applications to Supply Chain Coordination written by Jordan Tong and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Problem definition: What is your research problem? How can one adapt multiechelon inventory models to capture the cash flows generated by various payment timing contracts? What competitive inventory policy behavior arises under these various payment timing arrangements? Academic/Practical relevance: How is your research problem relevant to the OM research/practice community? Technology advancements are increasing the variety of payment triggers between supply chain stages. However, traditional multiechelon inventory models, which were originally developed for vertically integrated systems, do not explicitly account for payments flowing up the supply chain nor issues of payment timing between stages. Methodology: What is the underlying research method? We introduce an analytical modeling methodology to incorporate financial inventory costs generated by payment timing arrangements between stages in multiechelon inventory models. We also combine these methods with established inventory theory to study competitive inventory policies in a two-echelon system. Results: What are your key findings? Under a class of payment timing contracts, we show how to express payment flows at each stage in terms of standard physical inventory metrics and the demand arrival process. We also show how to calculate the average inventory costs for each stage under given inventory policies and payment timing contracts. In the two-echelon base stock model, we first show that the cost of decentralization under standard wholesale price contracts is significantly driven by too much inventory at the supplier; it is not exclusively driven by too little inventory at the retailer as in the selling-to-the-newsvendor literature. We show that wholesale price contracts with a type of popular consignment payment timing still leads to too little inventory at the retailer. However, we prove there exists a wholesale price contract with partial consignment timing that can achieve the centralized inventory levels at both the supplier and the retailer. Managerial implications: How can academics/managers/decision-makers benefit from your study? Researchers can leverage our methodology to incorporate the price transfers and and timing aspects of contracts in multiechelon inventory models. Our insights also help managers better understand the impact of prices and payment timing on decentralized chain behavior and performance.

Download or read book Optimal Control and Optimization of Stochastic Supply Chain Systems written by Dong-Ping Song and published by Springer Science & Business Media. This book was released on 2012-11-29 with total page 282 pages. Available in PDF, EPUB and Kindle. Book excerpt: Optimal Control and Optimization of Stochastic Supply Chain Systems examines its subject the context of the presence of a variety of uncertainties. Numerous examples with intuitive illustrations and tables are provided, to demonstrate the structural characteristics of the optimal control policies in various stochastic supply chains and to show how to make use of these characteristics to construct easy-to-operate sub-optimal policies. In Part I, a general introduction to stochastic supply chain systems is provided. Analytical models for various stochastic supply chain systems are formulated and analysed in Part II. In Part III the structural knowledge of the optimal control policies obtained in Part II is utilized to construct easy-to-operate sub-optimal control policies for various stochastic supply chain systems accordingly. Finally, Part IV discusses the optimisation of threshold-type control policies and their robustness. A key feature of the book is its tying together of the complex analytical models produced by the requirements of operational practice, and the simple solutions needed for implementation. The analytical models and theoretical analysis propounded in this monograph will be of benefit to academic researchers and graduate students looking at logistics and supply chain management from standpoints in operations research or industrial, manufacturing, or control engineering. The practical tools and solutions and the qualitative insights into the ideas underlying functional supply chain systems will be of similar use to readers from more industrially-based backgrounds.

Download or read book Corporate Environmental Management Climate Change and Sustainable Development written by Khaldoon Albitar and published by Frontiers Media SA. This book was released on 2023-10-09 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: The United Nations action plan for sustainable development, named “Transforming Our World: The 2030 Agenda for Sustainable Development” represents an international governance arrangement in response to the recent environmental challenges and social inequalities. Importantly, the Sustainable Development Goals (SDGs) framework sets a purpose to protect human rights, end poverty, reduce inequality, protect the planet and its natural resources, and enhance sustainable economic growth. Recently, due to the deterioration in global environmental conditions, increasing stakeholder demands, and stricter regulations and law all over the world, firms have realized the importance of integrating Sustainable Development Goals (SDGs) into their strategic orientations in order to enhance their environmental, social performances and keep sustainable development.

Download or read book Raz n de lo acaecido en la ciudad de San Francisco de Quito el d a 29 de abril de 1755 hasta el dos de mayo inclusive written by and published by . This book was released on 1755* with total page 4 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Two echelon Supply Chain Coordination Under Information Asymmetry with Multiple Types written by R. B. O. Kerkkamp and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Demand Management Models for Two echelon Supply Chains written by Ismail Serdar Bakal and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Specifically, we investigate a supply chain with multiple retailers and a single supplier where one of the retailers is considered a preferred or primary customer of the supplier. We compare the expected supplier and retailer profits under two order commitment strategies and specify conditions under which a particular commitment scheme benefits the supplier, the primary retailer, and the entire system. We compare our findings to a single-retailer system, and investigate the effects of capacitated supply. Observing that the outcome of the strategic interaction between the supplier and his primary customer is not in alignment with the supplier's preference, we propose and evaluate a number of demand management tools that the supplier can utilize in order to achieve his desired order commitment scheme. These tools include a capacity limit on the production quantity of the supplier, reallocation of the leftovers to the primary customer after demand realizations, and offering a discounted wholesale price. We also perform a comparative analysis of these tools and assess their effectiveness under various settings through a computational study.

Download or read book Coordination Mechanisms in Supply Chain by Contracts written by Yahya Pezeshki and published by . This book was released on with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In decentralized Supply Chains, each member decides based on his own interests. Conflict of interests results in suboptimal decisions and poor performance for entire supply chains, as well seriously harms credibly information sharing across them. In this thesis, coordination of decisions in supply chains in the context of Capacity Procurement problem are studied in different situations in form of three models. In first model, a dyadic supply chain with stochastic demand and exogenous price is investigated by taking various costs into account. PARD and RCRS contracts are designed and proposed in order for coordination of decisions respectively in full and partial information updating situations. It is mathematically shown that coordination is achieved by using each contract in its corresponding situation. In second model, endogenous price is assumed. That is, demand is modeled as sum of a decreasing linear function of price and a stochastic parameter. The model is first examined in a dyadic structure, and RSRP contract is proposed for coordinating of price, production time and production rate decisions. It is proved that coordination is achieved by RSRP contract in the dyadic structure. The application of RSRP contract is then extended to be employed in a divergent supply chain with multiple retailers, and shown that the supply chain performs considerably better than the same supply chain with a wholesale contract. In third model, a divergent supply chain comprising a supplier and multiple retailers is studied where retailers face stochastic and price-dependent demand. Since main decision makers in supply chain interactions are human, paying attention to human decision making process and their biases from theoretical predictions are important in designing coordination mechanisms. One of the non-pecuniary factors which cause deviations in human-decisions is Trust. In this model, the retailers have more accurate demand forecast information due to their proximity to market. In order to secure availability of products during the selling season, the retailers have incentives to inflate their private forecast information. A coordination mechanism is proposed, which consists of an optimization model, a scoring system and a rewarding-punishing system, in order to coordinate the supply chain. Using simulation approach, performance of the mechanism is then compared to those of two other mechanisms, namely Without Trust an Asymmetric mechanism. According to the results, employing the mechanism in situations with any demand variability is advised. More accurately, in situations with high demand variability, the mechanism achieves a proper profit improvement and moderate capability for identifying deceptive agents, while in situations with low demand variability, the mechanism shows insignificant profit improvement and considerable ability in identifying deceptive agents.

Download or read book Coordination of Inventory Decisions in Two stage Capacitated Supply Chains with Lead time Sensitive Revenues written by Waressara Weerawat and published by . This book was released on 2003 with total page 426 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Quantifying Shared Information Value in a Supply Chain Using Decentralized Markov Decision Processes with Restricted Observations written by and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Information sharing in a two-stage and three-stage supply chain is studied. Assuming the customer demand distribution is known along the supply chain, the information to be shared is the inventory level of each supply chain member. In order to study the value of shared information, the supply chain is examined under different information sharing schemes. A Markov decision process (MDP) approach is used to model the supply chain, and the optimal policy given each scheme is determined. By comparing these schemes, the value of shared information can be quantified. Since the optimal policy maximizes the total profit within a supply chain, allocation of the profit among supply chain members, or transfer cost/price negotiation, is also discussed. The information sharing schemes include full information sharing, partial information sharing and no information sharing. In the case of full information sharing, the supply chain problem is modeled as a single agent Markov decision process with complete observations (a traditional MDP) which can be solved based on the policy iteration method of Howard (1960). In the case of partial information sharing or no information sharing, the supply chain problem is modeled as a decentralized Markov decision process with restricted observations (DEC-ROMDP). Each agent may have complete observation of the process, or may have only restricted observation of the process. In order to solve the DEC-ROMDP, an evolutionary coordination algorithm is introduced, which proves to be effective if coupled with policy perturbation and multiple start strategies.