Replenishment decision making and coordination contract of cluster supply chain in a centralized VMI & TPL system

YAN Bo, LIU Yan-ping, XIA Chang

Systems Engineering - Theory & Practice ›› 2015, Vol. 35 ›› Issue (8) : 1968-1982.

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Systems Engineering - Theory & Practice ›› 2015, Vol. 35 ›› Issue (8) : 1968-1982. DOI: 10.12011/1000-6788(2015)8-1968

Replenishment decision making and coordination contract of cluster supply chain in a centralized VMI & TPL system

  • YAN Bo, LIU Yan-ping, XIA Chang
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Abstract

A centralized system of vendor managed inventory (VMI) and third party logistics (TPL) is brought into cluster supply chain in this paper and an integration management model of a three-level supply chain which consists of nvendors, one dominant TPL and one retailer is set up. First, aiming at to minimize the transport cost, the relationship of single transport cost and single transport batch is considered and the batch decision making of two replenishment modes that the TPL pickup goods from various suppliers respectively and according to the milkman pickup line is discussed. Second, based on the mode of "revenue-sharing" contract, the "risk sharing-revenue sharing" contract based on asymmetric Nash negotiation is established, and some important conclusions are drawn. The research finds that the selection of replenishment mode and replenishment batch is effected by the marginal cost factor of transportation. Further, the effect on the mode of pickup goods according to the milkman pickup line is bigger. The study also finds that the "risk sharing-revenue sharing" contract based on asymmetric Nash negotiation can uniquely set the parameters to obtain Pareto optimality of the supply chain.

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vendor managed inventory / third party logistics / replenishment decision / "revenue sharing" contract

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YAN Bo , LIU Yan-ping , XIA Chang. Replenishment decision making and coordination contract of cluster supply chain in a centralized VMI & TPL system. Systems Engineering - Theory & Practice, 2015, 35(8): 1968-1982 https://doi.org/10.12011/1000-6788(2015)8-1968

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