Optimal (R, Q) policy and pricing for two-echelon supply chain with lead time and retailer's service-level incomplete information
Many studies focus on inventory systems to analyze different real-world situations. This paper considers a two-echelon supply chain that includes one warehouse and one retailer with stochastic demand and an up-to-level policy. The retailer's lead time includes the transportation time from the w...
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Published in: | Journal of industrial engineering international Vol. 14; no. 1; pp. 43 - 53 |
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Springer Berlin Heidelberg Islamic Azad University, South Tehran Branch Islamic Azad University |
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Abstract | Many studies focus on inventory systems to analyze different real-world situations. This paper considers a two-echelon supply chain that includes one warehouse and one retailer with stochastic demand and an up-to-level policy. The retailer's lead time includes the transportation time from the warehouse to the retailer that is unknown to the retailer. On the other hand, the warehouse is unaware of retailer's service level. The relationship between the retailer and the warehouse is modeled based on the Stackelberg game with incomplete information. Moreover, their relationship is presented when the warehouse and the retailer reveal their private information using the incentive strategies. The optimal inventory and pricing policies are obtained using an algorithm based on bi-level programming. Numerical examples, including sensitivity analysis of some key parameters, will compare the results between the Stackelberg models. The results show that information sharing is more beneficial to the warehouse rather than the retailer. |
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AbstractList | Abstract Many studies focus on inventory systems to analyze different real-world situations. This paper considers a two-echelon supply chain that includes one warehouse and one retailer with stochastic demand and an up-to-level policy. The retailer’s lead time includes the transportation time from the warehouse to the retailer that is unknown to the retailer. On the other hand, the warehouse is unaware of retailer’s service level. The relationship between the retailer and the warehouse is modeled based on the Stackelberg game with incomplete information. Moreover, their relationship is presented when the warehouse and the retailer reveal their private information using the incentive strategies. The optimal inventory and pricing policies are obtained using an algorithm based on bi-level programming. Numerical examples, including sensitivity analysis of some key parameters, will compare the results between the Stackelberg models. The results show that information sharing is more beneficial to the warehouse rather than the retailer. Many studies focus on inventory systems to analyze different real-world situations. This paper considers a two-echelon supply chain that includes one warehouse and one retailer with stochastic demand and an up-to-level policy. The retailer's lead time includes the transportation time from the warehouse to the retailer that is unknown to the retailer. On the other hand, the warehouse is unaware of retailer's service level. The relationship between the retailer and the warehouse is modeled based on the Stackelberg game with incomplete information. Moreover, their relationship is presented when the warehouse and the retailer reveal their private information using the incentive strategies. The optimal inventory and pricing policies are obtained using an algorithm based on bi-level programming. Numerical examples, including sensitivity analysis of some key parameters, will compare the results between the Stackelberg models. The results show that information sharing is more beneficial to the warehouse rather than the retailer. |
Author | Naghavi, M. S Ghahghaei, A Esmaeili, M |
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CitedBy_id | crossref_primary_10_18178_jiii_8_2_38_43 crossref_primary_10_2139_ssrn_3965617 crossref_primary_10_1080_00207543_2019_1685702 crossref_primary_10_1007_s13132_022_01085_9 crossref_primary_10_1007_s40092_019_00322_2 crossref_primary_10_4018_IJICTE_333860 |
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Keywords | Lead time Service level Transportation cost Two-echelon supply chain Incomplete information |
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Snippet | Many studies focus on inventory systems to analyze different real-world situations. This paper considers a two-echelon supply chain that includes one warehouse... Abstract Many studies focus on inventory systems to analyze different real-world situations. This paper considers a two-echelon supply chain that includes one... |
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SubjectTerms | Economic models Engineering Engineering Economics Facility Management Game theory Incomplete information Industrial and Production Engineering Inventory Lead time Logistics Marketing Mathematical and Computational Engineering Organization Original Research Parameter sensitivity Pricing Quality Control Reliability Safety and Risk Sensitivity analysis Service level Supply chains Transportation cost Two-echelon supply chain |
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Title | Optimal (R, Q) policy and pricing for two-echelon supply chain with lead time and retailer's service-level incomplete information |
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