Paper Title:
Inventory Management in Competition Environment Based on Customer Service
  Abstract

Based on demand uncertainty, the paper studies inventory management decision of two competing supply chains from the perspective of customer service. The paper mainly discusses two different inventory strategies, which are widely used, that is, consignment stock and VMI, and analyzes the optimal policies under three competitive scenarios, which consist of using consignment stock in both supply chains (CC mode), using VMI in both supply chains (DD mode), and using consignment stock in one supply chain but VMI another (VC mode). The paper compares equilibrium inventory level and profit of supply chain in different competitive modes, and concludes that both supply chains use VMI is equilibrium, which means that when manufacturers have right to choose inventory management policy, they prefer VMI. But it isn’t paradoxical with the phenomenon that consignment stock is common in reality, because manufacturers are forced to use consignment by retailer’s channel power.

  Info
Periodical
Edited by
Qi Luo
Pages
2141-2146
DOI
10.4028/www.scientific.net/AMM.58-60.2141
Citation
X. Di, B. Xing, "Inventory Management in Competition Environment Based on Customer Service", Applied Mechanics and Materials, Vols. 58-60, pp. 2141-2146, 2011
Online since
June 2011
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Price
$32.00
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