In order to increase supply chain total profit, we design a supply chain collaboration mechanism between one
supplier and one retailer. Throughout the paper we present one supplier and one retailer set up with random
demand in a decentralized supply chain. An incentive function on the buy-back cost and wholesale price cost is
presented and scheme through the buy-back contract and wholesale-price contract has been developed to enrich
the retailer take part in the collaboration ways. Furthermore, the paper shows that, how corporation between
buy-back contract and wholesale contract could coordinate the supply chain in both a decentralized and
centralized supply chain. Lastly, we set up numerical analyses and the result shows the implied collaboration
mechanism is not permit the decentralized system to achieve the same performance as the centralized decision
however it allows both members in the supply chain gains profit sharing by setting up the contract parameters.
Coordination in Three-Level Supply Chain under Output and Demand Uncertaintyinventionjournals
Purpose: The purpose of this research is to designing a contract that can coordinate three -level supply chain with output and demand uncertainty. Design/methodology/approach: This paper focuses on three-level supply chain with a supplier, a manufacturer and a retailer. If the supplier and the manufacturer’s production is subject to random yield and the retailer faces uncertain demand, the existence of supply chain demonstrates doubled marginalizing lead to analyses of supply chain coordination and buyback contract. Findings: Although buyback contract cannot coordinate the three – level supply chain, it can improve the performance of supply chain. Therefore, we design the buyback-cost sharing contract from the perspective of risk sharing to coordination supply chain, and the profits of all members of the supply chain have been improved by Pareto. The numerical examples further to research the effects of demand and output uncertainty on supply chain performance. Originality/value: Comprehensively comparing risk-sharing contract and buyback contract is only presented in the supply chain.
A Deterministic Inventory Model for Perishable Items with Price Sensitive Qua...IJMERJOURNAL
ABSTRACT: An inventory system is considered with trended demand which is assumed to be a function of price and time dependent quadratic demand. For minimizing the total cost of the inventory system, it is assumed that the deterioration rate is constant and the supplier offers the retailer a credit period to settle the account of the procurement units. To solve the model it is further assumed that shortages are not allowed. Salvage value is also considered and observed its effect on the total cost. A numerical example is given to test the strength of the model. Critical parameters are identified by studying the sensitivity of the system.
Variational Inequalities Approach to Supply Chain Network Equilibriumiosrjce
IOSR Journal of Mathematics(IOSR-JM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of mathemetics and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications in mathematics. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
Evolutionary Technique for Combinatorial Reverse AuctionsShubhashis Shil
The document discusses a genetic algorithm approach for solving winner determination in combinatorial reverse auctions that consider multiple item attributes and instances. The approach uses chromosome representations based on the number of items and instances. It evaluates discounts, stock availability, and buyer/seller constraints to determine procurement costs. Experiments show the method efficiently returns optimal costs in reasonable time and is consistent across problem instances.
Considering Multiple Instances of Items in Combinatorial Reverse AuctionsShubhashis Shil
This paper proposes a genetic algorithm (GA) called GAMICRA to solve the winner determination problem in combinatorial reverse auctions when multiple instances of items are considered. GAMICRA modifies the chromosome representation and fitness function to account for multiple items. It includes two procedures, RemoveRedundancy and RemoveEmptiness, to repair infeasible chromosomes by ensuring the number of selected item instances does not exceed or fall below the buyer's requirements. Experimental results demonstrate GAMICRA finds solutions with minimum procurement cost in efficient processing time and does not suffer from inconsistency issues.
A NOVEL APPROACH FOR ALLOCATING NETWORK AND IT RESOURCES OFFERED BY DIFFERENT...ijdpsjournal
IT TECHNOLOGIES ARE INCREASINGLY BEING USED TO OFFER COMPUTING RESOURCES OR INFORMATION IN
DIFFERENT LOCATIONS USING NETWORK RESOURCES. IN THIS PAPER WE ADDRESS THE PROBLEM OF
ALLOCATING RESOURCES TO ENABLE CUSTOMERS COMPOSE THEIR OWN DESIRED SERVICES. WE PROPOSE AN
AUCTION MECHANISM THAT COMPRISES INDEPENDENT AUCTIONS PERFORMED BY EACH PROVIDER AND
INVESTIGATE BIDDING STRATEGIES AND SOCIAL WELFARE.
Supplier Selection and Evaluation by Fuzzy-AHP Extent Analysis: A Case Study ...Dr. Amarjeet Singh
The ready-made garments (RMG)is a rapid
growing industry in Bangladesh and contributing
significantly in the country’s economy. Effective supplier
selection policy has significant strategic importance in the
performance of such fast moving consumer goods industry.
The supplier selection process is essentially a multi-criterion
decision making problem which, therefore, must be
developed systematically. Many models have been developed
and proposed to find optimum solutions of this complex
decision-making problem. Fuzzy Analytic Hierarchy
Process (Fuzzy-AHP), which is a derived extension of
classical Analytical Hierarchy Process (AHP),is an excellent
method for deciding among the complex structure at
different levels. In this paper an extent analysis of FuzzyAHP has been applied to evaluate and select the best
supplier agency providing most satisfaction. The evaluation
criteria are developed particularly for an RMG
manufacturer in Bangladesh context and used successfully
in the proposed model. A detailed implementation process is
presented in this paper and finally the best supplier agency
has been proposed from the outcome of the model.
CONSIGNMENT INVENTORY SIMULATION MODEL FOR SINGLE VENDOR-MULTI BUYERS IN A SU...IAEME Publication
The document describes a simulation model of a consignment inventory system for a single vendor and multiple buyers. The simulation model is developed using Flexsim software and evaluates key performance metrics like total cost, inventory levels, shipments, and fill rate. Three models are simulated: one without delays, one with delivery delays, and one with partial information sharing between vendor and buyer. Results show that total cost increases with more buyers but information sharing reduces costs the most, especially for multiple buyers. The number of shipments and delays decreases with information sharing while fill rate increases.
Coordination in Three-Level Supply Chain under Output and Demand Uncertaintyinventionjournals
Purpose: The purpose of this research is to designing a contract that can coordinate three -level supply chain with output and demand uncertainty. Design/methodology/approach: This paper focuses on three-level supply chain with a supplier, a manufacturer and a retailer. If the supplier and the manufacturer’s production is subject to random yield and the retailer faces uncertain demand, the existence of supply chain demonstrates doubled marginalizing lead to analyses of supply chain coordination and buyback contract. Findings: Although buyback contract cannot coordinate the three – level supply chain, it can improve the performance of supply chain. Therefore, we design the buyback-cost sharing contract from the perspective of risk sharing to coordination supply chain, and the profits of all members of the supply chain have been improved by Pareto. The numerical examples further to research the effects of demand and output uncertainty on supply chain performance. Originality/value: Comprehensively comparing risk-sharing contract and buyback contract is only presented in the supply chain.
A Deterministic Inventory Model for Perishable Items with Price Sensitive Qua...IJMERJOURNAL
ABSTRACT: An inventory system is considered with trended demand which is assumed to be a function of price and time dependent quadratic demand. For minimizing the total cost of the inventory system, it is assumed that the deterioration rate is constant and the supplier offers the retailer a credit period to settle the account of the procurement units. To solve the model it is further assumed that shortages are not allowed. Salvage value is also considered and observed its effect on the total cost. A numerical example is given to test the strength of the model. Critical parameters are identified by studying the sensitivity of the system.
Variational Inequalities Approach to Supply Chain Network Equilibriumiosrjce
IOSR Journal of Mathematics(IOSR-JM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of mathemetics and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications in mathematics. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
Evolutionary Technique for Combinatorial Reverse AuctionsShubhashis Shil
The document discusses a genetic algorithm approach for solving winner determination in combinatorial reverse auctions that consider multiple item attributes and instances. The approach uses chromosome representations based on the number of items and instances. It evaluates discounts, stock availability, and buyer/seller constraints to determine procurement costs. Experiments show the method efficiently returns optimal costs in reasonable time and is consistent across problem instances.
Considering Multiple Instances of Items in Combinatorial Reverse AuctionsShubhashis Shil
This paper proposes a genetic algorithm (GA) called GAMICRA to solve the winner determination problem in combinatorial reverse auctions when multiple instances of items are considered. GAMICRA modifies the chromosome representation and fitness function to account for multiple items. It includes two procedures, RemoveRedundancy and RemoveEmptiness, to repair infeasible chromosomes by ensuring the number of selected item instances does not exceed or fall below the buyer's requirements. Experimental results demonstrate GAMICRA finds solutions with minimum procurement cost in efficient processing time and does not suffer from inconsistency issues.
A NOVEL APPROACH FOR ALLOCATING NETWORK AND IT RESOURCES OFFERED BY DIFFERENT...ijdpsjournal
IT TECHNOLOGIES ARE INCREASINGLY BEING USED TO OFFER COMPUTING RESOURCES OR INFORMATION IN
DIFFERENT LOCATIONS USING NETWORK RESOURCES. IN THIS PAPER WE ADDRESS THE PROBLEM OF
ALLOCATING RESOURCES TO ENABLE CUSTOMERS COMPOSE THEIR OWN DESIRED SERVICES. WE PROPOSE AN
AUCTION MECHANISM THAT COMPRISES INDEPENDENT AUCTIONS PERFORMED BY EACH PROVIDER AND
INVESTIGATE BIDDING STRATEGIES AND SOCIAL WELFARE.
Supplier Selection and Evaluation by Fuzzy-AHP Extent Analysis: A Case Study ...Dr. Amarjeet Singh
The ready-made garments (RMG)is a rapid
growing industry in Bangladesh and contributing
significantly in the country’s economy. Effective supplier
selection policy has significant strategic importance in the
performance of such fast moving consumer goods industry.
The supplier selection process is essentially a multi-criterion
decision making problem which, therefore, must be
developed systematically. Many models have been developed
and proposed to find optimum solutions of this complex
decision-making problem. Fuzzy Analytic Hierarchy
Process (Fuzzy-AHP), which is a derived extension of
classical Analytical Hierarchy Process (AHP),is an excellent
method for deciding among the complex structure at
different levels. In this paper an extent analysis of FuzzyAHP has been applied to evaluate and select the best
supplier agency providing most satisfaction. The evaluation
criteria are developed particularly for an RMG
manufacturer in Bangladesh context and used successfully
in the proposed model. A detailed implementation process is
presented in this paper and finally the best supplier agency
has been proposed from the outcome of the model.
CONSIGNMENT INVENTORY SIMULATION MODEL FOR SINGLE VENDOR-MULTI BUYERS IN A SU...IAEME Publication
The document describes a simulation model of a consignment inventory system for a single vendor and multiple buyers. The simulation model is developed using Flexsim software and evaluates key performance metrics like total cost, inventory levels, shipments, and fill rate. Three models are simulated: one without delays, one with delivery delays, and one with partial information sharing between vendor and buyer. Results show that total cost increases with more buyers but information sharing reduces costs the most, especially for multiple buyers. The number of shipments and delays decreases with information sharing while fill rate increases.
Coordination in Three-Level Supply Chain under Output and Demand Uncertaintyinventionjournals
This summary provides the key points from the document in 3 sentences:
The document discusses coordination in a three-level supply chain with a supplier, manufacturer, and retailer where there is uncertainty in production output and demand. It analyzes how a basic wholesale price contract does not coordinate the supply chain due to double marginalization. The document then proposes a buyback-cost sharing contract where the manufacturer subsidizes some of the supplier's costs, and shows that this contract can coordinate the supply chain by deriving the optimal order quantity and input levels.
International Journal of Engineering Research and Applications (IJERA) is an open access online peer reviewed international journal that publishes research and review articles in the fields of Computer Science, Neural Networks, Electrical Engineering, Software Engineering, Information Technology, Mechanical Engineering, Chemical Engineering, Plastic Engineering, Food Technology, Textile Engineering, Nano Technology & science, Power Electronics, Electronics & Communication Engineering, Computational mathematics, Image processing, Civil Engineering, Structural Engineering, Environmental Engineering, VLSI Testing & Low Power VLSI Design etc.
This document discusses how fairness preferences affect coordination in a two-stage supply chain with one supplier and one retailer under a buy-back contract. The key findings are:
1) If only the retailer considers fairness, buy-back contracts can still coordinate the supply chain. The retailer's optimal order quantity and coordination conditions do not change based on the retailer's fairness preference.
2) Even if the supplier does not know the retailer's degree of fairness preference, the supplier can design wholesale and buy-back prices to achieve maximum profits or utility.
3) Fairness preferences will not impact the coordination of buy-back contracts in the supply chain if only the retailer considers fairness. The coordination conditions remain the same regardless
Supplier and buyer driven channels in a two-stage supply chainGurdal Ertek
This summarizes a research paper that explores supplier and buyer-driven channels in a two-stage supply chain model. It develops models where either the supplier or buyer has dominant bargaining power to determine pricing. The paper shows that when the buyer has power, it is optimal for them to use only a multiplier on wholesale price and not a markup. It also shows market price and sensitivity increases with operational costs. The sensitivity of market price to wholesale price increases non-linearly and is bounded from below. Increasing costs have a decreasing marginal impact on prices and profits. There are cases where suppliers prefer buyer-driven channels and vice versa.
Decisions in a supply chain modeling for comparative evaluation strategies in...IAEME Publication
This document summarizes and evaluates different supply chain strategies for a model with one vendor and multiple buyers. It finds that strategies involving consignment inventory, delayed deliveries, and information sharing between buyers can optimize supply chain costs and other decision variables. Specifically:
- A strategy combining consignment inventory, delayed deliveries of up to 4 shipments, and information sharing between 2 buyers yielded the lowest total supply chain cost of $3,120.
- Allowing for delayed deliveries (the CI-k1 model) generally reduced costs compared to the basic consignment inventory model (CI), by lowering maximum inventory levels held by buyers.
- Enabling information sharing between buyers (the CI-IS
DECISIONS IN A SUPPLY CHAIN MODELING FOR COMPARATIVE EVALUATION STRATEGIES IN...IAEME Publication
This document summarizes and evaluates different supply chain strategies for a model with one vendor and multiple buyers. It finds that strategies involving consignment inventory, delayed deliveries, and information sharing between buyers can optimize supply chain costs and other decision variables. Specifically:
1) A strategy combining consignment inventory, delayed deliveries of up to 4 shipments, and information sharing between 2 buyers achieved the lowest total supply chain cost of $3,120.
2) In general, involving more buyers in the supply chain through models with information sharing resulted in greater cost savings compared to models without information sharing.
3) Maintaining the production to demand ratio close to 3.2 optimized the balance between total supply chain
The document is an invitation letter from the general chair of the IEEE EPEC 2011 Conference to Mr. Masoud Yadollahi Zadeh. It invites him to participate in the conference from October 3-5, 2011 in Winnipeg, Canada, where he will be presenting his paper titled "Nash Equilibrium In competitive Electricity Markets". It provides details about the conference objectives, acknowledges that all expenses will be covered by the participant or their company, and provides contact information for the registration chair if he has any other questions.
Stochastic Order Level Inventory Model with Inventory Returns and Special Salestheijes
This article deals with a single period inventory model with inventory returns and special sales. The demand is assumed to occur in a uniform pattern during a planning period say, tp. Both non-deteriorating items and deteriorating items are considered for the discussion
This document informs Masoud Yadollahi zadeh that his paper titled "Profit Maximization in Competitive Electricity Markets" has been accepted for oral presentation at the IEEE 3rd International Power and Energy Conference (PECon2010) in Kuala Lumpur, Malaysia from November 29 to December 1, 2010. The author is asked to address comments from reviewers to improve the paper and pre-register for the conference. The acceptance is conditional on at least one author attending to present the paper.
This document discusses methods for estimating cost functions and determining the optimal scale of operations. It covers:
1. Short-run and long-run cost functions which can be estimated statistically using regression analysis and engineering cost techniques.
2. Factors that influence costs such as output mix, input prices, and technology. Controling for these is important to isolate the cost-output relationship.
3. Break-even analysis and contribution margin which are used to determine output levels required to cover fixed costs and earn profits. The relevance of different costs depends on whether alternatives are avoidable.
4. Operating leverage and business risk which depend on a firm's fixed costs, sales variability, and degree of operating leverage.
The document discusses various concepts related to costs, including:
1) It defines opportunity costs and different types of explicit and implicit costs.
2) It examines costs in the short run, including total, fixed, and variable costs. It provides an example of how these costs change with output for a company.
3) It discusses the relationship between average and marginal costs.
Gravitational Search Algorithm for Bidding Strategy in Uniform Price Spot MarketIRJET Journal
This document presents a gravitational search algorithm to develop an optimal bidding strategy for a generator in a deregulated electricity market. The algorithm aims to maximize the generator's profit by determining the optimal block price to bid. It models the electricity market as a static non-cooperative game with imperfect information. The algorithm predicts rivals' bidding behavior using a normal probability distribution and formulates the generator's bidding strategy as a stochastic optimization problem. Simulation results from applying the gravitational search algorithm are compared to results from genetic and particle swarm optimization algorithms.
Procurement Strategy for Manufacturing and JITIJERD Editor
Procurement involves the purchase of goods and services from the suppliers for the manufacturing units. Procuring the items in the most optimized way is very much desired to implement JIT effectively. Manufacturer-supplier relationship is very crucial for effective procurement policy. The present paper deals with various procurement strategies of manufacturing that include the optimization of manufacturing quantity along with the procurement of multiple input items. The procurement cycles for input items are considered in small lot sizes, which are essential for the effective implementation of JIT. The method of integer programming has been used to find the optimum integer values of number of orders for procuring the input items, which is usually found to be in fraction for a real manufacturing environment.
This document is a letter informing Dr. Masoud Yadollahi Zadeh that their paper titled "A New Approach To Obtain Maximum Benefit In Electricity Markets Based On The Newton Iteration Equation" has been accepted for presentation at the 13th IASME/WSEAS International Conference on Mathematical Methods and Computational Techniques in Electrical Engineering in Angers, France from November 17-19, 2011. The letter provides information on registering for the conference, guidelines for preparing papers for the proceedings, and notes that the best papers may be invited for journal publication. It encourages Dr. Yadollahi Zadeh's attendance and participation in the conference.
Order Size Dependent Trade Credit Study in a Three Echelon Supply Chain ModelEditor IJCATR
In present study, we generalize order linked trade credit policy in three echelon supply chain system where manufacturer,
distributor and retailer are involved and manufacturer provide a delay period to distributor and distributor also provide a order linked
trade credit policy to his retailers. Whole study is discussed in time dependent production and demand rate. We model a three echelon
supply chain system as cost minimization to determine the system’s optimal cycle time. In this paper, we determine the optimal cycle
time, optimal order quantity and optimal payment time. Finally numerical examples are given to illustrate the result and the managerial
insights are also obtained
The document provides an overview of cost concepts that will be covered in Chapter 8. It defines different types of costs including accounting costs, opportunity costs, fixed costs, and variable costs. It explains the concepts of average cost, marginal cost, and their relationships. It discusses costs in the short run versus the long run and how all costs are variable in the long run. It also covers costs for multi-product firms and the allocation of common costs for joint products. Finally, it introduces the linkages between costs, revenue, and output through concepts like total revenue, average revenue, and marginal revenue.
Modeling+pricing+strategies+using+game+theory+and+support+vector+machinesMuhammad Akbar Khan
This document discusses modeling pricing strategies in the credit industry using game theory and support vector machines (SVMs). It proposes a model where pricing is determined through a game-theoretic framework modeling competition between companies. Demand is estimated at the customer-level using SVMs to incorporate a large number of variables. This detailed demand estimation is then used in a market-level game theoretic model to understand the strategic interactions between competitors. The model allows companies to gain insights into customer behavior and competitor strategies to inform their own pricing decisions.
A MULTI-OBJECTIVE APPROACH FOR OPTIMUM QUOTA ALLOCATION TO SUPPLIERS IN SUPPL...IAEME Publication
In all industrial firms where a large number of parts and components are supplied by different suppliers to the raw materiel stores. So it is necessary to keep a track of their performances and supplier ratings individually. The shortages of many basic raw materials and unfriendly attitudes on the part of suppliers can seriously jeopardize production units. So supplier evaluation comes a necessary task. The supplier selection in the supply chain is a multi-criteria problem for this a problem is formulated. The formulated problem is including three primary objectives such as minimizing the net purchase cost, minimizing the net transportation cost and minimizing the net late deliveries subject to realistic constraints regarding buyer’s demand, vendor’s capacity, budget allocation to individual vendor, Vendor’s quality of the items, vendor’s quota flexibility, purchase value of items etc. This paper consists of allocating the quota to suppliers from a set of pre-selected candidates. In this paper the Lexicographic Method is used and solved above three objectives on the priority basis. A real life example is also presented and solved by the MATLAB and results are shown in the paper.
Research on fresh agricultural product based on the retailer's overconfidence...IJMIT JOURNAL
In this article, we analyze the application of options contract in the special commodity supply chain such as
fresh agricultural products. This problem is discussed from the point of the retailer. When spot market and
future market are both available, we discuss how the retailer chooses the optimal production. Furthermore,
overconfidence is introduced to the supply chain of the fresh agricultural products, which has not happened
before. Then
,
based on the overconfidence of the retailer, we explore how overconfidence affects the supply
chain system under different circumstances. At last, we get the conclusion that different overconfidence
level has different affection on retailer’s optimal ordering quantity and profit.
Global supply chains and distribution new competitive strategies project peroptyvwang
The document discusses two supply chain models - factory localization and distribution center (DC) localization - for Hewlett-Packard's DeskJet printer supply chain. It formulates the models mathematically and analyzes the costs. The cost analysis finds that using air shipment instead of sea shipment provides more flexibility since it allows the additional cost of DC localization to be up to 14% of the common component cost rather than just 5%. Safety stock and holding costs are also calculated and found to be lower for DC localization with air shipment.
Coordination in Three-Level Supply Chain under Output and Demand Uncertaintyinventionjournals
This summary provides the key points from the document in 3 sentences:
The document discusses coordination in a three-level supply chain with a supplier, manufacturer, and retailer where there is uncertainty in production output and demand. It analyzes how a basic wholesale price contract does not coordinate the supply chain due to double marginalization. The document then proposes a buyback-cost sharing contract where the manufacturer subsidizes some of the supplier's costs, and shows that this contract can coordinate the supply chain by deriving the optimal order quantity and input levels.
International Journal of Engineering Research and Applications (IJERA) is an open access online peer reviewed international journal that publishes research and review articles in the fields of Computer Science, Neural Networks, Electrical Engineering, Software Engineering, Information Technology, Mechanical Engineering, Chemical Engineering, Plastic Engineering, Food Technology, Textile Engineering, Nano Technology & science, Power Electronics, Electronics & Communication Engineering, Computational mathematics, Image processing, Civil Engineering, Structural Engineering, Environmental Engineering, VLSI Testing & Low Power VLSI Design etc.
This document discusses how fairness preferences affect coordination in a two-stage supply chain with one supplier and one retailer under a buy-back contract. The key findings are:
1) If only the retailer considers fairness, buy-back contracts can still coordinate the supply chain. The retailer's optimal order quantity and coordination conditions do not change based on the retailer's fairness preference.
2) Even if the supplier does not know the retailer's degree of fairness preference, the supplier can design wholesale and buy-back prices to achieve maximum profits or utility.
3) Fairness preferences will not impact the coordination of buy-back contracts in the supply chain if only the retailer considers fairness. The coordination conditions remain the same regardless
Supplier and buyer driven channels in a two-stage supply chainGurdal Ertek
This summarizes a research paper that explores supplier and buyer-driven channels in a two-stage supply chain model. It develops models where either the supplier or buyer has dominant bargaining power to determine pricing. The paper shows that when the buyer has power, it is optimal for them to use only a multiplier on wholesale price and not a markup. It also shows market price and sensitivity increases with operational costs. The sensitivity of market price to wholesale price increases non-linearly and is bounded from below. Increasing costs have a decreasing marginal impact on prices and profits. There are cases where suppliers prefer buyer-driven channels and vice versa.
Decisions in a supply chain modeling for comparative evaluation strategies in...IAEME Publication
This document summarizes and evaluates different supply chain strategies for a model with one vendor and multiple buyers. It finds that strategies involving consignment inventory, delayed deliveries, and information sharing between buyers can optimize supply chain costs and other decision variables. Specifically:
- A strategy combining consignment inventory, delayed deliveries of up to 4 shipments, and information sharing between 2 buyers yielded the lowest total supply chain cost of $3,120.
- Allowing for delayed deliveries (the CI-k1 model) generally reduced costs compared to the basic consignment inventory model (CI), by lowering maximum inventory levels held by buyers.
- Enabling information sharing between buyers (the CI-IS
DECISIONS IN A SUPPLY CHAIN MODELING FOR COMPARATIVE EVALUATION STRATEGIES IN...IAEME Publication
This document summarizes and evaluates different supply chain strategies for a model with one vendor and multiple buyers. It finds that strategies involving consignment inventory, delayed deliveries, and information sharing between buyers can optimize supply chain costs and other decision variables. Specifically:
1) A strategy combining consignment inventory, delayed deliveries of up to 4 shipments, and information sharing between 2 buyers achieved the lowest total supply chain cost of $3,120.
2) In general, involving more buyers in the supply chain through models with information sharing resulted in greater cost savings compared to models without information sharing.
3) Maintaining the production to demand ratio close to 3.2 optimized the balance between total supply chain
The document is an invitation letter from the general chair of the IEEE EPEC 2011 Conference to Mr. Masoud Yadollahi Zadeh. It invites him to participate in the conference from October 3-5, 2011 in Winnipeg, Canada, where he will be presenting his paper titled "Nash Equilibrium In competitive Electricity Markets". It provides details about the conference objectives, acknowledges that all expenses will be covered by the participant or their company, and provides contact information for the registration chair if he has any other questions.
Stochastic Order Level Inventory Model with Inventory Returns and Special Salestheijes
This article deals with a single period inventory model with inventory returns and special sales. The demand is assumed to occur in a uniform pattern during a planning period say, tp. Both non-deteriorating items and deteriorating items are considered for the discussion
This document informs Masoud Yadollahi zadeh that his paper titled "Profit Maximization in Competitive Electricity Markets" has been accepted for oral presentation at the IEEE 3rd International Power and Energy Conference (PECon2010) in Kuala Lumpur, Malaysia from November 29 to December 1, 2010. The author is asked to address comments from reviewers to improve the paper and pre-register for the conference. The acceptance is conditional on at least one author attending to present the paper.
This document discusses methods for estimating cost functions and determining the optimal scale of operations. It covers:
1. Short-run and long-run cost functions which can be estimated statistically using regression analysis and engineering cost techniques.
2. Factors that influence costs such as output mix, input prices, and technology. Controling for these is important to isolate the cost-output relationship.
3. Break-even analysis and contribution margin which are used to determine output levels required to cover fixed costs and earn profits. The relevance of different costs depends on whether alternatives are avoidable.
4. Operating leverage and business risk which depend on a firm's fixed costs, sales variability, and degree of operating leverage.
The document discusses various concepts related to costs, including:
1) It defines opportunity costs and different types of explicit and implicit costs.
2) It examines costs in the short run, including total, fixed, and variable costs. It provides an example of how these costs change with output for a company.
3) It discusses the relationship between average and marginal costs.
Gravitational Search Algorithm for Bidding Strategy in Uniform Price Spot MarketIRJET Journal
This document presents a gravitational search algorithm to develop an optimal bidding strategy for a generator in a deregulated electricity market. The algorithm aims to maximize the generator's profit by determining the optimal block price to bid. It models the electricity market as a static non-cooperative game with imperfect information. The algorithm predicts rivals' bidding behavior using a normal probability distribution and formulates the generator's bidding strategy as a stochastic optimization problem. Simulation results from applying the gravitational search algorithm are compared to results from genetic and particle swarm optimization algorithms.
Procurement Strategy for Manufacturing and JITIJERD Editor
Procurement involves the purchase of goods and services from the suppliers for the manufacturing units. Procuring the items in the most optimized way is very much desired to implement JIT effectively. Manufacturer-supplier relationship is very crucial for effective procurement policy. The present paper deals with various procurement strategies of manufacturing that include the optimization of manufacturing quantity along with the procurement of multiple input items. The procurement cycles for input items are considered in small lot sizes, which are essential for the effective implementation of JIT. The method of integer programming has been used to find the optimum integer values of number of orders for procuring the input items, which is usually found to be in fraction for a real manufacturing environment.
This document is a letter informing Dr. Masoud Yadollahi Zadeh that their paper titled "A New Approach To Obtain Maximum Benefit In Electricity Markets Based On The Newton Iteration Equation" has been accepted for presentation at the 13th IASME/WSEAS International Conference on Mathematical Methods and Computational Techniques in Electrical Engineering in Angers, France from November 17-19, 2011. The letter provides information on registering for the conference, guidelines for preparing papers for the proceedings, and notes that the best papers may be invited for journal publication. It encourages Dr. Yadollahi Zadeh's attendance and participation in the conference.
Order Size Dependent Trade Credit Study in a Three Echelon Supply Chain ModelEditor IJCATR
In present study, we generalize order linked trade credit policy in three echelon supply chain system where manufacturer,
distributor and retailer are involved and manufacturer provide a delay period to distributor and distributor also provide a order linked
trade credit policy to his retailers. Whole study is discussed in time dependent production and demand rate. We model a three echelon
supply chain system as cost minimization to determine the system’s optimal cycle time. In this paper, we determine the optimal cycle
time, optimal order quantity and optimal payment time. Finally numerical examples are given to illustrate the result and the managerial
insights are also obtained
The document provides an overview of cost concepts that will be covered in Chapter 8. It defines different types of costs including accounting costs, opportunity costs, fixed costs, and variable costs. It explains the concepts of average cost, marginal cost, and their relationships. It discusses costs in the short run versus the long run and how all costs are variable in the long run. It also covers costs for multi-product firms and the allocation of common costs for joint products. Finally, it introduces the linkages between costs, revenue, and output through concepts like total revenue, average revenue, and marginal revenue.
Modeling+pricing+strategies+using+game+theory+and+support+vector+machinesMuhammad Akbar Khan
This document discusses modeling pricing strategies in the credit industry using game theory and support vector machines (SVMs). It proposes a model where pricing is determined through a game-theoretic framework modeling competition between companies. Demand is estimated at the customer-level using SVMs to incorporate a large number of variables. This detailed demand estimation is then used in a market-level game theoretic model to understand the strategic interactions between competitors. The model allows companies to gain insights into customer behavior and competitor strategies to inform their own pricing decisions.
A MULTI-OBJECTIVE APPROACH FOR OPTIMUM QUOTA ALLOCATION TO SUPPLIERS IN SUPPL...IAEME Publication
In all industrial firms where a large number of parts and components are supplied by different suppliers to the raw materiel stores. So it is necessary to keep a track of their performances and supplier ratings individually. The shortages of many basic raw materials and unfriendly attitudes on the part of suppliers can seriously jeopardize production units. So supplier evaluation comes a necessary task. The supplier selection in the supply chain is a multi-criteria problem for this a problem is formulated. The formulated problem is including three primary objectives such as minimizing the net purchase cost, minimizing the net transportation cost and minimizing the net late deliveries subject to realistic constraints regarding buyer’s demand, vendor’s capacity, budget allocation to individual vendor, Vendor’s quality of the items, vendor’s quota flexibility, purchase value of items etc. This paper consists of allocating the quota to suppliers from a set of pre-selected candidates. In this paper the Lexicographic Method is used and solved above three objectives on the priority basis. A real life example is also presented and solved by the MATLAB and results are shown in the paper.
Research on fresh agricultural product based on the retailer's overconfidence...IJMIT JOURNAL
In this article, we analyze the application of options contract in the special commodity supply chain such as
fresh agricultural products. This problem is discussed from the point of the retailer. When spot market and
future market are both available, we discuss how the retailer chooses the optimal production. Furthermore,
overconfidence is introduced to the supply chain of the fresh agricultural products, which has not happened
before. Then
,
based on the overconfidence of the retailer, we explore how overconfidence affects the supply
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Supply Chain Coordination with Buy-back and Wholesale-price Contracts under Random Demand
1. Azamat Rajapov et al. Int. Journal of Engineering Research and Applications www.ijera.com
ISSN: 2248-9622, Vol. 6, Issue 2, (Part - 1) February 2016, pp.29-33
www.ijera.com 29|P a g e
Supply Chain Coordination with Buy-back and Wholesale-price
Contracts under Random Demand
Azamat Rajapov*, Jian Ming**, Wang Nannan***
*(School of Transportation and Logistics, Southwest Jiaotong University; Chengdu, China)
** (School of Transportation and Logistics, Southwest Jiaotong University; Chengdu, China)
***(School of Transportation and Logistics, Southwest Jiaotong University; Chengdu, China)
ABSTRACT
In order to increase supply chain total profit, we design a supply chain collaboration mechanism between one
supplier and one retailer. Throughout the paper we present one supplier and one retailer set up with random
demand in a decentralized supply chain. An incentive function on the buy-back cost and wholesale price cost is
presented and scheme through the buy-back contract and wholesale-price contract has been developed to enrich
the retailer take part in the collaboration ways. Furthermore, the paper shows that, how corporation between
buy-back contract and wholesale contract could coordinate the supply chain in both a decentralized and
centralized supply chain. Lastly, we set up numerical analyses and the result shows the implied collaboration
mechanism is not permit the decentralized system to achieve the same performance as the centralized decision
however it allows both members in the supply chain gains profit sharing by setting up the contract parameters.
Keywords – Supply chain, Collaboration mechanism, Buy-back contract, Wholesale contract.
I. INTRODUCTION
When we talk about supply chain collaboration
with contracts, we start to review supply chain
collaboration related research papers, wherein to
design effective incentive schemes can allow the
decentralized system of supply chain to achieve
optimal performance, has been studied in several
operations management literatures (Fawcett et al.
2012, Martin et al. 2010). Supply chain collaboration
is discussed last decades by academics (Barratt et al.
2004, Fawcett et al. 2012, Lambert et al. 2004). In
these papers related to pay attention to how to set up
the effective coordination mechanism by different
kinds of contracts. (Haoya et al. 2010) studied
coordination contracts for supplier – retailer
producing and selling fashionable products exhibiting
a stochastic price independent demand (Giannocaro
et al. 2004). A model of the supply chain contract
with revenue – sharing mechanism and this model
allows the system efficiency also it could improve the
supply chain member’s profits by editing the contract
parameters. Chaharsooghi and Heydari develop an
incentive scheme according to credit option contracts
to coordinate the reorder point and order quantity and
improve the overall supply chain profitability as well
as each member’s profitability (Chaharsooghi et al.
2010). Ozen et al. concentrate on coordination of
manufacturing and the retailers with buy-back
contracts and prove buy-back contracts; in general,
the distribution system cannot achieve the same
performance as the centralized system (Ozen et al.
2006). Apart from in accordance with what is done,
this paper considers collaborations of a two-echelon
supply chain consisting of one supplier and one
retailer based on random demand and finds a
collaboration mechanism with the buy-back contract
and wholesale contracts which not only allows the
decentralized system to perform just well as a
centralized one, but also provides a option of cost
allocation between the members of supply chain.
This paper consists of following: In section II, the
basic assumptions of the model are presented and the
total profit functions of supplier and the retailer are
discussed and also two extreme decentralized and
centralized of supply chain system to evaluate the
collaboration mechanisms above sections. Section III
the collaboration mechanism with the buy-back and
wholesale contracts under uncertain demand is
developed. Numerical analysis is done in Section IV.
We will conclude the paper in Section V.
II. Model and Decision Analysis
In our model we consider supply chain
coordination with both members a supplier and a
retailer in a one-period setting. The retailer discovers
a stochastic customer demand x and he has to
consider his stocking quantity that he orders from the
supplier, at the beginning of selling-period. When
placing his order q , exact demand is unknown for the
retailer that realization but knows the distribution of
demand. After a certain period of time, the goods are
produced and shipped to by supplier to the retailer.
Then the demand is realized and satisfied as much as
possible.
Throughout the paper we use following notations:
RESEARCH ARTICLE OPEN ACCESS
2. Azamat Rajapov et al. Int. Journal of Engineering Research and Applications www.ijera.com
ISSN: 2248-9622, Vol. 6, Issue 2, (Part - 1) February 2016, pp.29-33
www.ijera.com 30|P a g e
s
Supplier’s profit
r
Retailer’s profit
S Salvage cost for retailer
q Order quantity for retailer
p Selling price for retailer
c Production cost for the supplier
w Wholesale price
u Shortage value for retailer
For the given value of the order quantity, supplier’s
profit is given by
s
( ) (1)w c q
For the given value of the order quantity retailer’s
profit is given by
min{ , } [ ] [ ] (2)r
p q x S q x u x q wq
Where
[ ] max{0, },q x q x
[ ] max{0, }x q x q
When the retailer places his order, only the
distribution of the demand ( )F x and the density
function ( )f x are known. By Eq. (2), the expected
profit for the retailer is given by
A. Supply chain decentralized decision
In the supply chain decentralized decision
situation on the supplier and retailer optimize their
objective functions individually and retailer defines
optimal order quantity that achieves highest expected
profit depending on the wholesale price of the
supplier.
0
0
( ) ( ) ( )
( ) ( ) ( ) ( ) (3)
q
r
q
q
q
E p xf x dx p qf x dx
S q x f x dx u x q f x dx wq
First derivative of function ( )r
E on the order
quantity is q solved by
0 0
( )
( ) ( ) ( ) (4)
qr
q
dE
p f x dx S f x dx u f x dx w
dq
Let’s the right of the Eq. (4) equals to zero then
optimal order quantity in decentralized situation
*
decq
can be calculated solving the following equation:
*
( ) (5)dec
u p w
F q
u p S
That ( )F x represents a continuous probability
distribution of the random variable x
B. Supply chain centralized decision
In the supply chain centralized decision situation
the profit decision problem apart from decentralized
decision can be defined as a joint optimal problem.
Thus the actual total profit of the supply chain is
given by
min{ , } max{ , }[ ] [ ] (6)c
t p q x h S q x u x q cq
Wherein
c
t intends for the actual total profit of the
supply chain and h intends for the salvage value for
the supplier. The expected total profit function is
given by
0
0
( ) ( ) ( )
max( , ) ( ) ( ) ( ) ( ) (7)
q
c
t
q
q
q
E p xf x dx p qf x dx
h S q x f x dx u x q f x dx cq
By solving the Eq. (7) the first derivative of
function ( )c
tE on the order quantity q and let it
equal to zero the supplier and retailer define the
optimal order quantity
*
cenq able to get maximal
expected profit for the entire supply chain.
*
( ) (8)
max{ , }
cen
u p c
F q
u p h S
Similarity between Eq. (5) and Eq. (8), normally
w c , max{ , }S S h , thus it is without any
doubt can be verified that the decentralized decision
situation more order quantity will be placed by
retailer then the decentralized decision situation, that
leads to maximal total profit for entire supply chain.
Hence it is necessary that collaboration mechanism
would be set up to gain higher total profit of supply
chain.
3. Azamat Rajapov et al. Int. Journal of Engineering Research and Applications www.ijera.com
ISSN: 2248-9622, Vol. 6, Issue 2, (Part - 1) February 2016, pp.29-33
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III. Supply chain collaboration
mechanism
According to the analyses of supply chain
centralized decision and decentralized decision
represents that in the decentralized system scenario
without collaboration the expected total profit of the
entire supply chain is generally lower than in
centralized scenario one. Salvaging at the supplier is
more profitable than salvaging at the retailer because
the supplier could redirect the unsold or not-needed
units to the market of remanufacture and get positive
revenue. This chance becomes significant if the
supplier offers buy-back option to the retailer (Ozen
et al. 2010). Hence here consider a variable buy-back
cost that the supplier promises to offer to the retailer
when the ordered amount of the retailer more than
market demand at the end of the selling period. Let
b denote the buy-back cost the supplier has to pay
for every unit. Then the actual total profit of the
supplier and retailer and also total profit of the entire
supply chain after introducing buy-back cost are then
given by
s
( ) ( )[ ] (9)col w c q h b q x
min{ , } [ ] [ ] (10)r
col p q x u x q wq b q x
min{ , } [ ] [ ] (11)ent
t p q x h q x u x q cq
By similarity between Eq. (6) and Eq. (11), its
surely that total profit of supply chain in
decentralized decision and the total profit of the
entire supply chain after entering incentive function
are different depending on the order quantity of the
retailer salvaging at the supplier is more profitable
than salvaging at the retailer, that is h S
By Eq. (10) the expected profit of the retailer is given
by
0
0
( ) ( ) ( ) ( ) ( )
( ) ( ) (12)
q
r
col
q q
q
E p xf x dx p qf x dx u x q f x dx
wq b q x f x dx
After solving this first derivative of function
( )r
colE on the order quantity q and let it equals to
zero, the retailer defines the optimal order quantity
that can get maximal expected profit. The optimal
order quantity
*
colq can be calculated solving as
following:
*
( ) (13)col
u p w
F q
u p b
Note that buy-back contract cannot make the
distribution system can get the same performance as
the centralized system. Hence, it needed to introduce
wholesale price contract different from the buy-back
contract realize the perfect supply chain
collaboration. Let’s accept that buy-back price b and
wholesale price w that the decisions of the supplier
purpose to get the higher total profit of the supply
chain and the supplier directs to the retailer to choose
overall optimal decision. To surely that the retailer
chooses this value of order quantity that incurs
overall maximal expected total profit, the supplier
must fix the buy-back cost b and wholesale price
w so that following equation holds:
* *
( ) ( )
(14)
max{ , }
col cenF q F q
u p w u p c
u p b u p h S
After solving this Eq. (14) the optimal wholesale
price w as a function of buy-back priceb is
achieved:
( ) (15)
max{ , }
opt u p c
w u p u p b
u p h S
To ensure that in each combination the buy-back cost
and wholesale price that satisfied the above equation
that retailer chooses the overall optimal order policy
that leads to maximal expected total profit of the
entire supply chain. According to the supply chain
members agree with collaboration model, after
introducing incentive methods the expected profits of
supplier and retailer might be more than that with
decentralized decision situation, requires to fulfill as
follows:
( ) ( )r r
col decE E and
s s
( ) ( )col decE E
So far, it has been developed that collaboration
mechanism that gain an overall optimal performance
of the entire supply chain.
IV. Numerical analyses
In order to discuss the model and illustrate the
conclusion more clearly, this section through
numerical example analysis the supply chain decision
results in both decentralized and centralized system
are calculated and also get the better understanding
collaboration model. In this section we use following
4. Azamat Rajapov et al. Int. Journal of Engineering Research and Applications www.ijera.com
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parameters: wholesale price of the selling product
is 100$w . The production cost for the
supplier 60$c . For the retailer selling price per
unit for the market 130$p and shortage
cost 85$u . For the retailer salvaging price per
unit 35$S and salvaging price for the
supplier 50$h . Random variable x is on the
market that we get the range of random variable from
100 to 200 to make easy numerical calculation. That
density function is
( ) 1/ (200 100) 100 200 (17)f x x
Then probability distribution becomes:
( ) ( 100/ 200 100) 100 200 (18)F x x x
A. Decision Analysis of Supply Chain
From the Eq. (5) and Eq. (18) density function
optimal order quantity of the retailer in supply chain
decentralized decision can be solved as
*
100
(19)
200 100
decq u p w
u p S
After this simple calculation the optimal order
quantity
*
decq becomes 163 units. Supplier expected
profit is ( )s
E is 6670 USD and expected profit of
retailer ( )r
E is equals to 2880 USD after that the
total entire supply chain ( )ent
tE is equals to 9550
USD, Then, optimal order quantity of the retailer in
supply chain
*
cenq is equal 193 units. Maximal
expected profit of entire supply chain ( )c
tE is
equals to 10542.5 USD. Table 1 is illustrated that
expected supply chain total profit in both centralized
and decentralized decision.
Table 1. Supply chain decision analyses
B. Running Collaboration Mechanism
Application
Optimal wholesale price as function of buy-back
cost is given by
91 0.93opt
w b
Where the constraint on the buy-back cost is attained
( ) 2880 ( ) 6670r s
col colE E
Buy-back cost is calculated from Esq.’s (9), (12) and
(17)
96 104b
The result of the total summarized numerical
analyses is shown in Table 2. It’s shown that if buy-
back cost is increasing the wholesale price cost also
increases as the expected profit of the supplier
increase and retailer’s expected profit is decreases.
b w ( )s
E ( )r
E ( )ent
tE
97 104 6671 3872 10542
98 106 6808 3735 10542
98 107 6919 3623 10542
99 107 7048 3511 10542
100 108 7147 3396 10542
101 109 7246 3283 10542
102 110 7374 3169 10542
103 110 7502 3055 10542
104 111 7601 2942 10542
Table 2. Result of numerical calculation
V. Conclusions
This paper illustrated the problem of supply
chain collaboration for the decentralized with one
supplier and one retailer under uncertain and random
demand. The buy-back and wholesale price contract
model are used. In order to better understanding the
collaboration model of supply chain the numerical
analysis is done. This paper proved that by adjusting
the parameters of buy-back and wholesale price
contract design members lead the supplier and the
retailer to increase profits comparing with
decentralized supply chain by setting the parameters.
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# Decentralized
decision
Centralized
decision
*
q 163 193
( )s
E 6670 -
( )r
E 2880 -
( )ent
tE 9550 10542
5. Azamat Rajapov et al. Int. Journal of Engineering Research and Applications www.ijera.com
ISSN: 2248-9622, Vol. 6, Issue 2, (Part - 1) February 2016, pp.29-33
www.ijera.com 33|P a g e
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g%20papers/Beta_WP193.pdf