Inventory decision models of a two-echelon supply chain based on a commitment contract

CAI Jian-hu, HAN Yi, ZHOU Gen-gui, DENG Shi-ming

Systems Engineering - Theory & Practice ›› 2011, Vol. 31 ›› Issue (10) : 1879-1891.

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Systems Engineering - Theory & Practice ›› 2011, Vol. 31 ›› Issue (10) : 1879-1891. DOI: 10.12011/1000-6788(2011)10-1879

Inventory decision models of a two-echelon supply chain based on a commitment contract

  • CAI Jian-hu1, HAN Yi1, ZHOU Gen-gui1, DENG Shi-ming2
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Abstract

Nowadays there are more and more uncertain marketing factors that the enterprises must face. The enterprise competitiveness depends on a trust-and-collaboration supply chain relationship. It is important to propose a more exible contract based on the traditional contract. Commitment contracts are proposed in this paper, and di erences between the commitment contract and the traditional contract are discussed. A two-echelon supply chain model is introduced under uncertainty. The supply chain members' optimal decisions are gained when the retailer o ers the supplier a commitment contract. Then the paper considers the application of the commitment contract when the supply chain can complement products two times. All our ndings are illustrated by numerical examples.

Key words

supply chain management / inventory decision / commitment contract

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CAI Jian-hu, HAN Yi, ZHOU Gen-gui, DENG Shi-ming. Inventory decision models of a two-echelon supply chain based on a commitment contract. Systems Engineering - Theory & Practice, 2011, 31(10): 1879-1891 https://doi.org/10.12011/1000-6788(2011)10-1879
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