Skip to main content
SpringerLink
Log in

Study on the Coordinating Policy of Multi-echelon Inventory System

  • Conference paper
  • First Online:
Advances in Harmony Search, Soft Computing and Applications (ICHSA 2019)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1063))

Included in the following conference series:

  • 465 Accesses

Abstract

The mechanism to enhance the performance of the supply chain by coordination policy is analyzed in detail. The simple supply chain is modeled as a decentralized two-level inventory system, and the optimal decision formulas are deduced for the firms at their stages in the supply chain by systematic optimality. The result of numerical experiment shows that the coordination failure is observed in the simple deterministic decentralized inventory system. It is proved obviously that the proper revenue sharing contract design is a useful coordinating tool to incentive the firms to choose actions which lead firms and total supply chain to global optimization as a result.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Arrow, K., Harris, T., Marschak, J.: Optimal inventory policy. Econometrica 19, 50–272 (1951)

    MathSciNet  MATH  Google Scholar 

  2. Gurnani, H., Drezner, Z.: Deterministic hierarchical substitution inventory models. J. Oper. Res. Soc. 51, 129–133 (2000)

    Article  Google Scholar 

  3. Andersson, J., Marklund, J.: Decentralized inventory control in a two-level distribution system. Eur. J. Oper. Res. 127, 483–506 (2000)

    Article  MathSciNet  Google Scholar 

  4. Zhao, X., Huang, S.: Inventory Management. Tsinghua University Press, Beijing (2008)

    Google Scholar 

  5. Popiuc, M.N., Govindan, K.: Reverse supply chain coordination by revenue sharing contract: a case for the personal computers industry. EJOR 233, 326–336 (2014)

    Article  MathSciNet  Google Scholar 

  6. Haan, M.: The economics of free internet access. JITE 157, 359–379 (2001)

    Article  Google Scholar 

  7. Gerard, C., Christian, T.: Matching Supply with Demand: An Introduction to operations Management, 3rd edn. McGraw Hill Higher Education, Beijing (2012)

    Google Scholar 

  8. Xiao, T., Xu, T.: Coordinating price and service level decisions for a supply chain with deteriorating item under vendor management inventory. Int. J. Prod. Econ. 145, 743–752 (2013)

    Article  Google Scholar 

  9. Berman, O., Crass, D.M., Tajbakhsh, M.: A coordinated location-inventory model. Eur. J. Oper. Res. 217, 500–508 (2012)

    Article  MathSciNet  Google Scholar 

  10. Ma, H.: Game Theory. Tongji Press, Shanghai (2015)

    Google Scholar 

Download references

Acknowledgment

The author would like to thank the Logistics and Supply Chain Management Discipline Cultivating Program of Shanghai Polytechnic University (XXKPY1606).

Author information

Authors and Affiliations

  1. Shanghai Polytechnic University, Shanghai, 201209, China

    Tao Yang

Authors
  1. Tao Yang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Tao Yang .

Editor information

Editors and Affiliations

  1. School of Civil, Environmental and Architectural Engineering, Korea University, Seoul, Korea (Republic of)

    Joong Hoon Kim

  2. Department of Energy IT , Gachon University, Seongnam, Kwangju-jikhalsi, Korea (Republic of)

    Zong Woo Geem

  3. Keimyung University, Daegu, Korea (Republic of)

    Donghwi Jung

  4. Department of Civil Engineering, Suwon University, Gyeonggi-do, Korea (Republic of)

    Do Guen Yoo

  5. Department of Mathematics, Dr. BR Ambedkar National Institute of Technology, Jalandhar, India

    Anupam Yadav

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Yang, T. (2020). Study on the Coordinating Policy of Multi-echelon Inventory System. In: Kim, J., Geem, Z., Jung, D., Yoo, D., Yadav, A. (eds) Advances in Harmony Search, Soft Computing and Applications. ICHSA 2019. Advances in Intelligent Systems and Computing, vol 1063. Springer, Cham. https://doi.org/10.1007/978-3-030-31967-0_25

Download citation

Publish with us

Policies and ethics

Search

Navigation