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Chinese Journal of Management Science ›› 2010, Vol. 18 ›› Issue (5): 76-81.

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Seasonal Product Supply Chain Coordination with Resource Constraints and Lost Sale Penalty Cost

CHEN Ju-hong1, GUO Fu-li1, SHI Cheng-dong2   

  1. 1. School of Economics and Management, Xi'an University of Technology, Xi'an 710054, China;
    2. School of Electric and Electronic Engineering, Shangdong University of Technology, Zibo 255049, China
  • Received:2009-10-09 Revised:2010-09-15 Online:2010-10-30 Published:2010-10-30

Abstract: In seasonal product supply chain,the manufacturer's marginal cost increases with outputs with resources constraints,and the retailer would be charge with lost sale cost when shortages happen.In this paper,a two-stage supply chain consisted of single manufacturer and single retailer is chosen as the research object.Firstly both manufacturer's and retailer's optimal decision behaviors are analyzed under non-cooperative state.The manufacturer will determine the wholesale price according to order quantity.Then,the optimal decision behavior of the centralized supply chain is given.Secondly,a coor dination model based on the return policy is established and the decision making behaviors of both parties are analyzed under cooperative state.The results show that in the incentives of returning strategic,the retailer accepts the optimal production decision making on the whole,but the relationship between the manufacturer's who lesale price and discount factor need to satisfy positive change constraints within a certain range.At this point,the partners reached win win and thus the effective coordination of the supply chain can be obtained.Finally,we carry out umerical analysis to verify the validity of the results.

Key words: supply chain, coordination, season product, resource constraint, shortages, return policy

CLC Number: