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Chinese Journal of Management Science ›› 2014, Vol. 22 ›› Issue (6): 50-60.

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Research on Production and Distribution Collaborative Mode Based on Supply-Hub

MA Shi-hua, LV Fei   

  1. School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
  • Received:2012-03-31 Revised:2013-06-12 Online:2014-06-20 Published:2014-06-26

Abstract: A production and distribution collaborative decision model of two-suppliers and one-manufacturer is established based on Supply-Hub under stochastic demand, through comparing the model with a production and distribution collaborative decision model that does not have the Supply-Hub in the supply chain. It is proved we prove that Supply-Hub can reduce the total cost of supplier, manufacturer and supply chain. In the final part of this paper, the influence of demand uncertainty on production and distribution collaborative mode through data analysis are discussed. The analytical result shows that, the advantage of Supply-Hub is more obvious if the demand is more uncertain, and Supply-Hub can limit its delivery lot size even though demand uncertainty is very high. When demand uncertainty exceeds a certain extent, suppliers will deliver parts to Supply-Hub in small volume and multi-batch.

Key words: Supply-Hub, production and distribution, collaborative, demand uncertainty, inventory

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