Manufacturer-Retailer Collaboration for Production and Marketing Planning

Abstract:

In this study, we propose the production and marketing planning of decentralized supply chain with capacitated constraint in a single-retailer Stackelberg and a single-manufacturer under VMI and consignment agreements. The study formulates the mathematics-based profit-maximization model and develops the solution procedures under collaborative and non-collaborative programs over a multi-period planning horizon. The analysis reveals that the benefit generated from collaborative program can significantly achieve channel-wide profit improvements.

• Periodical: Applied Mechanics and Materials (Volumes 121-126)
• Pages: 1347-1351
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.121-126.1347
• Online since: October 2011
• Authors: Liang Tu Chen, Tsui Ping Wu
• Keywords: Manufacturer-Retailer Collaboration, Marketing, Production

References

[1] J. Eliashberg and R. Steinberg, Marketing-production joint decision-making. In J. Eliashberg and G. L. Lillien (eds), Handbooks in Operations Research and Management Science, Marketing Vol. 5, Elsevier Science Publishers B. V (1993).

DOI: 10.1016/s0927-0507(05)80041-6

[2] B. P. Shapiro, Can marketing and manufacturing coexist? Harvard Business Review, 55, 104-114 (1977).

[3] J. Raju and Z. J. Zhang, Channel Coordination in the presence of a dominant retailer, Marketing Science, 24 (2), 254-262 (2005).

DOI: 10.1287/mksc.1040.0081

[4] J. M. Chen, I. C. Lin, and H. L. Cheng, Channel coordination under consignment and vendor-managed inventory in a distribution system, Transportation Research Part E: Logistics and Transportation Review 46(6), 831-843 (2010).

DOI: 10.1016/j.tre.2010.05.007

[5] M. I. Höhn, Relational supply contracts - Chapter 2: literature review on supply chain contracts, Lecture Notes in Economics and Mathematical Systems, 629, 19-34 (2010).

DOI: 10.1007/978-3-642-02791-8_2

[6] F. Raafat, Survey of literature on continuously deteriorating inventory models. Journal of the Operational Research Society 42, 27-37 (1991).

DOI: 10.1057/jors.1991.4

[7] S. T. Young and W. D. Nie, A cycle-count model considering inventory policy and record variance. Production and Inventory Management 33, 11-16 (1992).

[8] F. J. Newton, Information please: do you have any information on inventory shortages? Management Accounting, 70, 52-53 (1988).

[9] S. D. imchi-Levi, P. Kaminsky and E. Simchi-Levi, Designing and managing the supply chain: concepts, strategies, and case studies, McGraw-Hill, Taiwan (2008).

DOI: 10.1002/j.2158-1592.2001.tb00165.x

[10] A. Langenwalter, Enterprise Resources Planning and Beyond Integrating Your Entire Organization, Boca Raton, FL: CRC Press LCC (2000).

[11] W. Elmaghraby and P. Keskinocak, Dynamic pricing in the presence of inventory considerations: research overview, current practices, and future directions. Management Science 49, 1287-1309 (2003).

DOI: 10.1287/mnsc.49.10.1287.17315