NDLI: Synchronization in multi-echelon supply chain applying timing discount

Content Provider	Springer Nature Link
Author	Sarlak, Reza okabadi, Ali
Copyright Year	2011
Abstract	Due to the increasing emphasis on the effective management of the supply chain, synchronization and cooperation issues between suppliers and retailers in decentralized multi-echelon inventory/distribution systems have gained much attention in the recent years. In this paper, we consider coordination issues of a distribution system composed of a manufacturer, a supplier (distributor), and several retailers. The supplier outsourcing a third party offers a timing discount to multiple retailers in order to synchronize the timing of their orders with the order cycle. It is also assumed that retailers are allowed to face stock outs. In this paper, a mathematical model is developed to analyze the problem. Results show that while synchronizing the supplier and the outsourcer enhances the supply chain efficiency, offering any type of timing discount by the supplier decreases the supply chain efficiency. It is also noted that having coordination between the manufacturer and the supplier has no impact on the supplier’s profit but may decrease the retailer’s costs. It is believed that our findings provide potential and significant managerial implications in the area of supply chain coordination when these systems are decentralized.
Starting Page	289
Ending Page	297
Page Count	9
File Format	PDF
ISSN	02683768
Journal	The International Journal of Advanced Manufacturing Technology
Volume Number	59
Issue Number	1-4
e-ISSN	14333015
Language	English
Publisher	Springer-Verlag
Publisher Date	2011-07-10
Publisher Place	London
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Supply chain management Synchronizing in supply chain Timing discount Inventory/distribution system Computer-Aided Engineering (CAD, CAE) and Design Mechanical Engineering Industrial and Production Engineering Production/Logistics/Supply Chain
Content Type	Text
Resource Type	Article
Subject	Industrial and Manufacturing Engineering Control and Systems Engineering Mechanical Engineering Computer Science Applications Software

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