|Title:||Optimum policies for dynamic supply chain management : competitive vs. cooperative view|
|Proceedings:||Proceedings of the IPLnet 2005 Workshop|
|Conference details:||IPLnet Workshop, Böttstein, 2005|
|Publisher / Ed. Institution :||IPLnet|
|License (according to publishing contract) :||Licence according to publishing contract|
|Type of review:||Not specified|
|Subjects :||Supply chain; Optimization; Theory of games|
|Subject (DDC) :||658.5: Production management|
|Abstract:||In this paper, we study a supplier-retailer supply chain under nonstationary stochastic demand. Depending on the logistics cost rates of the supply chain partners and their accounting schemes, there may be substantial differences between individually and collectively optimum inventory management policies. We propose transfer payments between the supply chain partners as a measure to eliminate incentives for departing from collectively optimum policies and thus make them incentive compatible. In case the supply chain faces changes in the demand pattern, demand forecasts are required for both stages for periodic updates of their strategy parameters. We propose a simple smoothing technique to obtain these forecasts. Both, transfer payments and the forecasting method combined, provide a method to manage a supply chain optimally with respect to three criteria. First, total operating costs are minimized, second, no member of the supply chain has incentives to deviate from collective optimality and third, the system is reactive to changes in demand patterns.|
|Departement:||School of Engineering|
|Organisational Unit:||Institute of Data Analysis and Process Design (IDP)|
|Publication type:||Conference Paper|
|Appears in Collections:||Publikationen School of Engineering|
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.