NDLI: Optimum coverage of uncertainties in a supply chain with an order size constraint

Content Provider	Springer Nature Link
Author	Chaharsooghi, S. Kamal Heydari, Jafar
Copyright Year	2009
Abstract	Supply chain (SC) uncertainties are present in both the demand and supply sides of the chain. If these uncertainties are not countered appropriately, the customer service level (CSL) and customer satisfaction will decrease, and this, in turn, will lead to a loss of sales volume and SC profitability. Maintaining an appropriate level of safety stock as a counteracting solution to SC uncertainties can boost the CSL. In traditional decision making, the retailer determines the CSL by determining its own safety stock level. However, the CSL affects the sales volume and profitability of the upstream members. This paper investigates the joint decision making on CSL in a two-stage SC with a constraint on the retailer's order size to analyze the benefits of coordination and cooperation when determining the CSL. The results of this study show that CSL coordination can significantly increase the profitability of the SC.
Starting Page	283
Ending Page	293
Page Count	11
File Format	PDF
ISSN	02683768
Journal	The International Journal of Advanced Manufacturing Technology
Volume Number	47
Issue Number	1-4
e-ISSN	14333015
Language	English
Publisher	Springer-Verlag
Publisher Date	2009-07-23
Publisher Place	London
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Supply chain Coordination Customer service level Reorder point Uncertainty Computer-Aided Engineering (CAD, CAE) and Design Mechanical Engineering Production/Logistics Industrial and Production Engineering
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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