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Statistics in Transition New Series
Polish Statistical Association
Central Statistical Office of Poland
Subject: Economics, Statistics & Probability
ISSN: 1234-7655
eISSN: 2450-0291
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CHANNEL PERFORMANCE UNDER VENDOR MANAGED CONSIGNMENT INVENTORY CONTRACT WITH ADDITIVE STOCHASTIC DEMAND
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
- FIGURES & TABLES
- REFERENCES
- EXTRA FILES
- COMMENTS
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.
FIGURES & TABLES
REFERENCES
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