SEARCH WITHIN CONTENT
Citation Information : Statistics in Transition New Series. Volume 19, Issue 3, Pages 551-561, DOI: https://doi.org/10.21307/stattrans-2018-030
License : (BY-NC-ND 4.0)
Published Online: 13-December-2018
Consignment as the shifting of the inventory ownership to a supplier is widely implemented in virtual market. In this form of business arrangement the supplier places goodsataretailer’slocationwithoutreceivingpayment,untilthegoodsaresold. We consider a single period supply chain model, where the supplier contracts with the retailer with some probability of return. Market demand is additive, linearly price– dependent and uncertain. We focus on vendor managed consignment inventory (VMCI)channel,inwhichthesupplierdecidestheconsignmentpriceandhisservice level and the retailer chooses the retail price. We study channel performance under VMCI setting by analysing how the model parameters inﬂuence decision quantities, channel proﬁt and risk function. We also illustrate the obtained results by a numerical example, which explains the overall solutions well.
BIENIEK, M.,(2017). Consignment Contracting with Inventory Control with Additive Price-Dependent Demand. In: Yu. G. Evtushenko, M. Yu. Khachay, O. V. Khamisov, Yu. A. Kochetov, V. U. Malkova, M. A. Posypkin (eds.): Proceedings of the OPTIMA-2017 Conference, Petrovac, Montenegro, 2017, http://ceur-ws.org., 1987, pp. 88–94.
HU, W., CHEN, D., YU, H., (2017). Beneﬁt and risk analysis of consignment contracts. Annals of Operations Research, 257, pp. 641–659.
HU, W., LI, Y., GOVINDAN, K., (2014). The impact of consumer returns policies on consignment contracts with inventory control. European Journal of Operational Research, 233, pp. 398–407.
KOCABIYIKOGLU,A.,POPESCU,I.,(2011). Anelasticityapproachtothenewsvendor with price-sensitivity demand. Operations Research, 59, pp. 301–312.
LEE, C., CHU, W., (2005). Who should control the inventory in a supply chain? European Journal of Operational Research, 164, pp. 158–172.
LI, S., ZHU, Z., HUANG, L., (2009). Supply chain coordination and decision making under consignment contract with revenue sharing. International Journal of Production Economics, 120, pp. 88–99.
MOSTARD, J., TEUNTER, R., (2006). The newsboy problem with resalable returns: A single model and case study. European Journal of Operational Research, 16, pp. 81–96.
OGRYCZAK, W., RUSZCZYNSKI, J., (2001). On consistency of stochastic dominance and mean-semideviation models. Mathematical Programming, 89, pp. 217–232.
OLAH,J.,LAKNER,Z.,HOLLOSI,P.,POPP,J.,(2017). Inventorymethodsinorder tominimizerawmaterialsattheinventorylevelinthesupplychain. LogForum, 13, pp. 439–454.
PETRUZZI, N. C., DADA, M., (1999). Pricing and newsvendor problem: a review with extensions. Operations Research, 47, pp. 183–194.
RU, J., WANG, Y., (2010). Consignment contracting: Who should control inventory in the supply chain? European Journal of Operational Research, 201, pp. 760–769.
RUBIO-HERRERO, J., BAYKAL-GURSOY, M., JASKIEWICZ, A., (2015). A price setting newsvendor problem under mean-variance criteria. European Journal of Operational Research, 247, pp. 575–587.
WANG, Y., JIANG, L., SHEN, Z.-J., (2004). Channel performance under consignment contract with revenue sharing. Management Science, 50, pp. 34–47.