CHANNEL PERFORMANCE UNDER VENDOR MANAGED CONSIGNMENT INVENTORY CONTRACT WITH ADDITIVE STOCHASTIC DEMAND 

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Statistics in Transition New Series

Polish Statistical Association

Central Statistical Office of Poland

Subject: Economics , Statistics & Probability

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ISSN: 1234-7655
eISSN: 2450-0291

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VOLUME 19 , ISSUE 3 (September 2018) > List of articles

CHANNEL PERFORMANCE UNDER VENDOR MANAGED CONSIGNMENT INVENTORY CONTRACT WITH ADDITIVE STOCHASTIC DEMAND 

Milena Bieniek

Keywords :  stochastic demand, supply chain, consignment, operations management

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

ARTICLE

ABSTRACT

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. 

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REFERENCES

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