Article: Retailer driven supply chain with limited transportation capacities and supply demand market index Journal: International Journal of Integrated Supply Management (IJISM) 2016 Vol.10 No.2 pp.103 - 131 Abstract: This paper addresses the problem of allocating the optimal shipping rates within a supply chain (SC) of minimum collaboration between its partners in a stochastic demand environment. Particularly, we consider a SC that consists of a set of manufacturers, distribution centres and retailers. The logistic service provider (LSP) limited transportation capacities restrict the retailers' aspiration to meet the entire demands. The objective function is to determine the optimal shipping rates that maximise the retailers' returns subject to the available LSP capacities and stochastic demand. An algorithm is presented to solve the optimisation model by finding the optimal rates. The algorithm works in a decentralised mode at the retailers' side. Intensive simulation experiments are conducted to test the model and the operational algorithm. The algorithm can be implemented at the retailer side without having to access the network global parameters except the knowledge of the product lead-times. Inderscience Publishers - linking academia, business and industry through research

Title: Retailer driven supply chain with limited transportation capacities and supply demand market index

Authors: Doraid M. Dalalah; Majid M. Aldaihani

Addresses: Faculty of Engineering, Industrial Engineering Department, Jordan University of Science and Technology, P.O. Box 3030, Irbid, 22110, Jordan ' Department of Industrial and Management Systems Engineering, College of Engineering and Petroleum, Kuwait University, P.O. Box 5969, Safat, 13060, Kuwait

Abstract: This paper addresses the problem of allocating the optimal shipping rates within a supply chain (SC) of minimum collaboration between its partners in a stochastic demand environment. Particularly, we consider a SC that consists of a set of manufacturers, distribution centres and retailers. The logistic service provider (LSP) limited transportation capacities restrict the retailers' aspiration to meet the entire demands. The objective function is to determine the optimal shipping rates that maximise the retailers' returns subject to the available LSP capacities and stochastic demand. An algorithm is presented to solve the optimisation model by finding the optimal rates. The algorithm works in a decentralised mode at the retailers' side. Intensive simulation experiments are conducted to test the model and the operational algorithm. The algorithm can be implemented at the retailer side without having to access the network global parameters except the knowledge of the product lead-times.

Keywords: supply chain management; SCM; retailers; manufacturers; distribution centres; stochastic demand; supply demand market index; production scheduling; inventory control; transport capacity; optimal shipping rates; logistics service providers; optimisation; simulation; product lead times.

DOI: 10.1504/IJISM.2016.077046

International Journal of Integrated Supply Management, 2016 Vol.10 No.2, pp.103 - 131

Received: 14 Apr 2015
Accepted: 18 Jul 2015
Published online: 20 Jun 2016 *

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Title: Retailer driven supply chain with limited transportation capacities and supply demand market index

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