Buyback and return policies for a book publishing firm = Egy könyvkiadó vállalat visszavásárlási stratégiája

A dolgozat célja egy vállalati gyakorlatból származó eset elemzése. Egy könyvkiadót tekintünk. A kiadó kapcsolatban van kis- és nagykereskedőkkel, valamint a fogyasztók egy csoportjával is vannak kapcsolatai. A könyvkiadók projekt rendszerben működnek. A kiadó azzal a problémával szembesül, hogy hogyan ossza el egy frissen kiadott és nyomtatott könyv példányszámait a kis- és nagykereskedők között, valamint mekkora példányszámot tároljon maga a fogyasztók közvetlen kielégítésére. A kiadóról feltételezzük, hogy visszavásárlási szerződése van a kereskedőkkel. A könyv iránti kereslet nem ismert, de becsülhető. A kis- és nagykereskedők maximalizálják a nyereségüket. = The aim of the paper is to analyze a practical real world problem. A publishing house is given. The publishing firm has contacts to a number of wholesaler / retailer enterprises and direct contact to customers to satisfy the market demand. The book publishers work in a project industry. The publisher faces with the problem how to allocate the stocks of a given, newly published book to the wholesaler and retailer, and to hold some copies to satisfy the customers direct from the publisher. The publisher has a buyback option. The distribution of the demand is unknown, but it can be estimated. The wholesaler / retailer maximize the profits. The problem can be modeled as a one-warehouse and N-retailer supply chain with not identical demand distribution. The model can be transformed in a game theory problem. It is assumed that the demand distribution follows a Poisson distribution

The effects of win-win conditions on revenue-sharing contracts

This paper studies revenue-sharing contracts in distribution chains in the presence of win-win conditions. Revenue-sharing contracts are a mechanism to coordinate the firms in a distribution chain. Under these contracts the retailer shares its revenue with the supplier in exchange for a lower wholesale price. The win-win conditions are natural conditions requiring that the profit of any firm may not decrease after implementing the revenue-sharing contract. If these conditions are not met, that is, if at least one firm is confronted with decreased profits, the firms will not agree upon signing the contract and the revenue-sharing contract will not be implemented. We show that the win-win conditions result in a smaller range of contracts being offered by the supplier. More important, in case of multiple competing retailers there may be no revenue-sharing contract satisfying these conditions. Hence, in the presence of win-win conditions revenue-sharing contracts are not suitable for distribution chains with a supplier and multiple competing retailers. For these chains we present a simple alternative coordination mechanism that coordinates the chain and satisfies all win-win conditions. \u

Quantifying supply chain ineffectiveness under uncoordinated pricing decisions

Department of Logistics2007-2008 > Academic research: refereed > Publication in refereed journalAccepted ManuscriptPublishe

U.S. Fresh Produce Wholesale Sector Trade Practices: Initial Survey Results

The wholesale sector is an intermediate stage in the supply chain of fresh produce. In general, business operations in this sector do not transform a specific product, but rather provide services related to the sale of the product. The term 'wholesaler' refers to all merchants that are part of this intermediate stage in the supply chain; namely, wholesale merchants, distributors, jobbers, shippers, import/export merchants, agents, brokers, commission merchants, and other types of intermediaries (US Census 2004). This definition of wholesalers, however, does not accurately depict all the activities and relationships participants in this supply chain sector develop. Hence, in order to be consistent with a correct terminology and to understand the results presented in this report, the use of 'intermediaries' throughout this paper refers to all participants including grower-shipper/distributors, brokers, custom service providers and wholesalers.Agribusiness,

Optimal Decisions of a Supply Chain with Two Risk-Averse and Competing Retailers under Random Demand

This paper investigates the optimal decisions in a decentralized supply chain consisting of one manufacturer and two competing retailers who face price-sensitive and stochastic demand. The retailers are risk averse with conditional value at risk (CVaR) as their risk measure, and the manufacturer is a risk-neutral agent. We construct manufacturer-Stackelberg games with retailers, who engage in horizontal price competition. For the multiplicative demand model and expected demand as an exponential function of both prices, we show that there exists the optimal pricing-ordering joint decision uniquely. We then explore the influence of the price sensitivity, risk aversion, and retail competition on optimal decisions and channel efficiency. The results show that retail competition contributes to manufacturer and improves channel efficiency of the decentralized supply chain. When the retailers are more risk averse, the channel efficiency becomes much lower. However, the level of retailers’ risk aversion has no significant impact on the manufacturer’s optimal wholesale price and retailer’s optimal selling price

Benefits of retailer-supplier partnership initiatives under time-varying demand:a comparative analytical study

This paper aims to help supply chain managers to determine the value of retailer-supplier partnership initiatives beyond information sharing (IS) according to their specific business environment under time-varying demand conditions. For this purpose, we use integer linear programming models to quantify the benefits that can be accrued by a retailer, a supplier and system as a whole from shift in inventory ownership and shift in decision-making power with that of IS. The results of a detailed numerical study pertaining to static time horizon reveal that the shift in inventory ownership provides system-wide cost benefits in specific settings. Particularly, when it induces the retailer to order larger quantities and the supplier also prefers such orders due to significantly high setup and shipment costs. We observe that the relative benefits of shift in decision-making power are always higher than the shift in inventory ownership under all the conditions. The value of the shift in decision-making power is greater than IS particularly when the variability of underlying demand is low and time-dependent variation in production cost is high. However, when the shipment cost is negligible and order issuing efficiency of the supplier is low, the cost benefits of shift in decision-making power beyond IS are not significant

Role of shared information systems in distribution channels

Some manufacturers are reluctant to rationally share their Information Systems (ISs) with their dealers. Through a detailed case study analysis, we explore what could impel a manufacturer to overcome its reluctance by analysing its control problems (lack of direction; motivational; and personal limitations). We show that sharing ISs provides benefits derived from the collection of information in both quantity and quality that is in turn utilized by the manufacturer. It ensures that the manufacturer controls operations with proper information, seeing the market through dealers. Therefore, manufacturers could share ISs in order to proactively manage their distribution channels in a non-coercive way.Algunos productores son reacios a compartir de forma racional sus sistemas informáticos (ISs en inglés) con sus comerciantes. Mediante un análisis detallado de un caso práctico, hemos explorado qué podría impulsar a un productor a superar su reticencia, al analizar su problemas de control (falta de dirección; limitaciones motivacionales; y personales). Se muestra que compartir los ISs aporta beneficios que derivan de la colección de información, tanto en cantidad como en calidad, lo que se utiliza en cambio por el productor. Esto asegura que el productor controla las operaciones con información apropiada, viendo de esa manera el mercado a través de los comerciantes. Por ello, los productores podrían compartir los ISs para dirigir proactivamente sus canales de distribución en una manera no coercitiva

A Stochastic Process Study of Two-Echelon Supply Chain with Bulky Demand Process Incorporating cost Sharing Coordination Strategies

This research considers a single-item two-echelon supply chain facing a sequence of stochastic bulky customer demand with random order inter-arrival time and random demand size. The demand process is a general renewal process and the cost functions for both parties involve the renewal function and its integral. The complexity of the general renewal function causes the computational intractability in deciding the optimal order quantities, so approximations for the renewal function and its integral are introduced to address the computational complexity. Asymptotic expansions are commonly used in the literature to approximate the renewal function and its integral when the optimal decisions are relatively large compared to the mean of the inter-renewal time. However, the optimal policies do not necessarily fall in the asymptotic region. So the use of asymptotic expansions to approximate the renewal function and its integral in the cost functions may cause significant errors in decision making. To overcome the inaccuracy of the asymptotic approximation, this research proposes a modified approximation. The proposed approximation provides closed form functions for the renewal function and its integral which could be applied to various optimization problems such as inventory planning, supply chain management, reliability and maintenance. The proposed approximations are tested with commonly used distributions and applied to an application in the literature, yielding good performance. By applying the proposed approximation method to the supply chain cost functions, this research obtains the optimal policies for the decentralized and the centralized cases. The numerical results provide insights into the cost savings realized by the centralization of the supply chain compared to the decentralized case. Furthermore, this research investigates coordination schemes for the decentralized case to improve the utilities of parties. A cost sharing mechanism in which the vendor offers the retailer a contract as a compensation of implementing vendordesired inventory policy is investigated. The sharing could be realized by bearing part of the retailer’s inventory holding cost or fixed cost. The contract is designed to minimize the vendors cost while satisfying the individual rationality of the retailer. Other forms of coordination mechanisms, such as the side payment and delayed payment, are also discussed

Analysis of a Vendor Managed Consignment Inventory System with Kan-ban Withdrawals and Payment Delays

Vendor Managed Inventory (VMI) System with Consignment Inventory (CI) policy is a solution for many supply chain leaders in a highly competitive market. In this paper, totally eight different inventory supply chain models are studied. The profit function of supplier and manufacturer in different environments are compared in order to show the profitability of the overall supply chain management system in a manufacturing industry with different time horizons. The inventory systems are applied on a supply chain consisting of a single supplier and a manufacturer. The main focus of this study is to analyze the effect of payment deferral and the time value of money in push and pull (Kanban) manufacturing systems when VMI-CI policy is applied

Review of Universal Salt Iodation in East Central and Southern Africa (ACSA)

\ud This paper presents a regional position on Universal Salt Iodation (USI) intervention in 14 countries ill the East, Central and Southern Africa( ECSA) region,namely;Botswana,Kenya,Malawi,Mauritius,Mozambique,Namibia,bells,South Africa, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe The is a follow-up to a resolution on the need to develop a regional position on USI intervention which was made at the Commonwealth Regional Health Community 25th Health Ministers Conference in Port Louis, Mauritius from November;29,1996. The overall objective was to get views on the implementation of USI intervention in order to identify areas requiring facilitation, harmonization , coordination and collaboration at nation and regional levels in the ECSA. The preparation of paper involved reviewing of USI legislation regulations plans of action, survey reports and workshop papers. To substantiate the literature review, individual interviews were held with USI stakeholders in Malawi, Namibia, Tanzania, Zambia, and Zimbabwe from July 10-21, 1997 In respect of the findings, all the CRHC mainland member states are implementing USI intervention as a long term strategy for virtual elimination of the year 2000. The evaluation results of some of the national programmes have shown improvement of indicators of adequacy of iodine in the body. For example there is crease in levels of urinary iodine and reduction of goiter in countries where the intervention has been implemented actively over the past few years. In order to enforce the marketing of iodated salt, more than half of the CRHC member states have legislated USI where those who have not passed legislation yet are promoting USI through extensive advocacy and marketing strategy. These national USI programmes are being augmented by technical, financial and material support from United Nations and multilateral agencies, and the cooperation and compliance of the salt industry in iodating and packaging salt in line with USI legislation of country in the ECSA region. There are obstacles and constraints that impinge on the progress of USI in the entire ECSA region: The national USI legislation and regulations are not harmonized. The role of other sub-sector such as agriculture, trade and industry, and issues related to quality assurance are not spelt out in the regulations. There is still disparity in level of awareness of USI and its importance at all levels. Except Malawi, the rest of CRHC member states have no USI legislation for all salt intended for animal consumption. This is threatening sustenance of USI as there some leakages of uniodated salt from livestock sub-sector to people. Further threat emerges from communities who produce uniodated salt on a small scale for their own consumption and sale in their localities. The export and import duty for iodated and uniodate salt are the same. This does not deter traders and consumers to market and use uniodated salt because its price is either low or similar to the price of iodated salt. The challenge is, therefore, how to place the USI high on the agenda of relevant national and ECSA regional sub-sectors which formulate, implement and coordinate policy in order to strengthen and harmonize the intervention as well as deploying regionally acceptable measures to overcome the constraints. The CRHC should facilitate the harmonization of the USI regulations in the ECSA region including the reduction of the present high iodine levels to the levels (20-40ppm iodine[30-66ppm Potassium iodate]) that are recommended by the WHO. The CRHC should ensure that quality assurance issues are made mandatory in order to promote quality of salt iodations during production and packaging. The CRHC should facilitate development of guidelines regarding the roles of all sub-sectors such as ministries of Agriculture, Health and Trade and Industry, Departments of customs (Revenue Collection Authorities) and Bureaus of Standards in the USI which should issued under the directive of the Southern Africa Development Community and Common Market for Eastern and Southern Africa trade agreement. The CRHC should facilitate and support promotion of USI through regional networking,development and production of information, education and communication(IEC) material, designation of a regional IDD/USI day establishment of IIDD newsletter. The CRHC should ensure that member states consider making uniodated salt for whatever use a controlled commodity and impose deterrent export and import duty in order to protect, support and promote use of iodated salt for human and animal consumption in the region. The CRHC should facilitate establishment of at least one regional micronutrients reference laboratory and improvement of the national laboratories. The CHRC should strengthen the Department of Food Security and Nutrition of personnel in order to enhance capacity to accomplish the suggested activities listed below along with other planned work in the Department. The CHRC should endeavor to mobilize technical, financial and resources for support of salt iodations in the region especially in countries which are lagging behind and small salt procedure. Facilitating and supporting the evaluation of selected national USI programmes in order to confirm the case for reduction of iodine levels in the ECSA region. Facilitating review and harmonization of USI legislation and relevant Standards Act in the ECSA region. Initiating and supporting the collaboration on the proposed imposition of deterrent export and import duty on uniodated salt in order to protect and promote use of iodated salt. Facilitating and supporting the guide for role vital sub-sector such as Bureaus of Standard, Chamber of Commerce, and Ministries of Trade and Industry, Agriculture, departments of Customs and Excise, in the promotion, supporting, protecting and monitoring USI in the ECSA region. Facilitating network and all aspects of IEC and designation of an IDD day in ECSA. Conducting ECSA regional conferences on USI policy direction and review with consideration of SADC and COMESA trade agreements. Establishing a regional data bank on USI and micronutrient in order to enhance and facilitate regional networking. Establishing a regional micronutrients reference laboratory for improvement of micronutrients laboratory services whilst on one hand, supporting devolution of some the services to the provinces in order to easy congestion in national laboratories. Collecting, documenting and disseminating USI current information and technology in the ECSA member states through newsletter, bulletins and regional workshops. Conducting and supporting training on: Micronutrients, food security and nutrition in order to develop and capacity for execution of intervention and Programme-driven (operational) research on micronutrient, food security and nutrition. \u