Supply chain single vendor – Single buyer inventory model with price-dependent demand

Purpose: The aim of this article is developing an integrated production-inventory-marketing model for a two-stage supply chain. The demand rate is considered as the Iso-elastic decreasing function of the selling price. The main research goal of the article is to obtain the optimal values of the selling price, order quantity and number of shipments for the proposed model under independent and also joint optimization. In addition, the effects of the model’s parameters on the optimal solution are investigated. Design/methodology/approach: Mathematical modeling is used to obtain the joint total profit function of the supply chain. Then, the iterative solution algorithm is presented to solve the model and determine the optimal solution. Findings and Originality/value: It is observed that under joint optimization, the demand rate and the supply chain’s profit are higher than their values under independent optimization, especially for the more price sensitive demand. Therefore, coordination between the buyer and the vendor is advantageous for the supply chain. On the other hand, joint optimization will be less beneficial when there isn’t a significant difference between the buyer’s and the vendor’s holding costs. Originality/value: The contribution of the article is determining the ordering and pricing policy jointly in the supply chain, which contains one vendor and one buyer while the demand rate is the Iso-elastic function of the selling pricePeer Reviewe

Aggregate production planning: A literature review and future research directions

Aggregate production planning (APP) is concerned with determining the optimum production and workforce levels for each period over the medium term planning horizon. It aims to set overall production levels for each product family to meet fluctuating demand in the near future. APP is one of the most critical areas of production planning systems. After the state-of-the-art summaries in 1992 by Nam and Logendran [ Nam, S. J., & Logendran, R. (1992). Aggregate production planning—a survey of models and methodologies. European Journal of Operational Research, 61(3), 255-272. ], which specifically summarized the various existing techniques from 1950 to 1990 into a framework depending on their abilities to either produce an exact optimal or near-optimal solution, there has not been any systematic survey in the literature. This paper reviews the literature on APP models to meet two main purposes. First, a systematic structure for classifying APP models is proposed. Second, the existing gaps in the literature are demonstrated in order to extract future directions of this research area. This paper covers a variety of APP models’ characteristics including modeling structures, important issues, and solving approaches, in contrast to other literature reviews in this field which focused on methodologies in APP models. Finally some directions for future research in this research area are suggested

Game-theoretic analysis of supply chain coordination under advertising and price dependent demand

Supply chain members cannot act independently and they need to act as a part of a unified system and coordinated with other members. Therefore, a coordination mechanism may be necessary to motivate members to achieve coordination. In this paper, the coordination problem is studied in a two-level supply chain consisting of a supplier and a retailer where demand is a function of price and advertising expenditures in two scenarios. The first scenario is “No coordination”, and the other scenario is “coordination with Revenue sharing contract”. The models are solved using game theory, Cooperative and Nash equilibrium. Finally, numerical examples are presented indicating that the average expected profit in the second scenario, coordination with revenue sharing, is higher than the first scenario. In addition numerical examples indicate that as price and advertising elasticity to demand increase, profitability of supply chain decreases

Coordination of pricing and co-op advertising models in supply chain: A game theoretic approach

Co-op advertising is an interactive relationship between manufacturer and retailer(s) supply chain and makes up the majority of marketing budget in many product lines for manufacturers and retailers. This paper considers pricing and co-op advertising decisions in two-stage supply chain and develops a monopolistic retailer and duopolistic retailer's model. In these models, the manufacturer and the retailers play the Nash, Manufacturer-Stackelberg and cooperative game to make optimal pricing and co-op advertising decisions. A bargaining model is utilized for determine the best pricing and co-op advertising scheme for achieving full coordination in the supply chain

A New Play-off Approach in League Championship Algorithm for Solving Large-Scale Support Vector Machine Problems

There are many numerous methods for solving large-scale problems in which some of them are very flexible and efficient in both linear and non-linear cases. League championship algorithm is such algorithm which may be used in the mentioned problems. In the current paper, a new play-off approach will be adapted on league championship algorithm for solving large-scale problems. The proposed algorithm will be used for solving large-scale solving support vector machine model which is a quadratic optimization problem and cannot be solved in a non polynomial time using exact algorithms or optimally using traditional heuristic ones in large scale sizes. The efficiency of the new algorithm will be compared to traditional one in terms of the optimality and time measures. The superiority of the algorithm can be compared versus older version

Modified economic order quantity (EOQ) model for items with imperfect quality: Game-theoretical approaches

In the recent decade, studying the economic order quantity (EOQ) models with imperfect quality has appealed to many researchers. Only few papers are published discussing EOQ models with imperfect items in a supply chain. In this paper, a two-echelon decentralized supply chain consisting of a manufacture and a supplier that both face just in time (JIT) inventory problem is considered. It is sought to find the optimal number of the shipments and the quantity of each shipment in a way that minimizes the both manufacturer’s and the supplier’s cost functions. To the authors’ best knowledge, this is the first paper that deals with imperfect items in a decentralized supply chain. Thereby, three different game theoretical solution approaches consisting of two non-cooperative games and a cooperative game are proposed. Comparing the results of three different scenarios with those of the centralized model, the conclusions are drawn to obtain the best approach

Supply chain single vendor – Single buyer inventory model with price-dependent demand

Purpose: The aim of this article is developing an integrated production-inventory-marketing model for a two-stage supply chain. The demand rate is considered as the Iso-elastic decreasing function of the selling price. The main research goal of the article is to obtain the optimal values of the selling price, order quantity and number of shipments for the proposed model under independent and also joint optimization. In addition, the effects of the model’s parameters on the optimal solution are investigated. Design/methodology/approach: Mathematical modeling is used to obtain the joint total profit function of the supply chain. Then, the iterative solution algorithm is presented to solve the model and determine the optimal solution. Findings and Originality/value: It is observed that under joint optimization, the demand rate and the supply chain’s profit are higher than their values under independent optimization, especially for the more price sensitive demand. Therefore, coordination between the buyer and the vendor is advantageous for the supply chain. On the other hand, joint optimization will be less beneficial when there isn’t a significant difference between the buyer’s and the vendor’s holding costs. Originality/value: The contribution of the article is determining the ordering and pricing policy jointly in the supply chain, which contains one vendor and one buyer while the demand rate is the Iso-elastic function of the selling pricePeer Reviewe