International Journal of Inventory Research (5 papers in press)
Supply Chain Coordination with Inventory and Pricing Decisions
by Hau-Ling Chan
Abstract: In this study, we conduct a comprehensive literature review on the inventory and pricing decisions under the supply chain coordination. To be specific, we review the publications from 1997 to 2017 and divide the papers into six areas for discussion; they are: decisions under integrated supply chain, supply contract, capital-constrained, competition, risk aversion, and information asymmetry. After reviewing the literature, we identify three major future research directions. First, we propose to explore different real world industrial supply contracts and the forms of demand function. Second, limited studies consider risk aversion behavior of the supply chain members, hence, we also propose to examine the inventory and pricing decisions under supply chain coordination with risk-averse retailer and risk-averse supplier, respectively. Finally, it is also interesting to investigate different types of information asymmetry.
Keywords: Supply chain coordination; inventory and pricing decisions; review.
Sale-surety and quality warranty model based on options in supply chain
by Chongping Chen
Abstract: Options can be used to hedge risks caused by different types of uncertainty in supply chain management. The first part of this study examines how to use surety-options to coordinate a retailer-leader supply chain. It develops an option model in which the retailer guarantees sales and the supplier guarantees quality. The retailer and the supplier negotiate the options price and security regulations. The supplier can transfer part of the market risk to the retailer but in return has to bear the quality risk. By the theoretical analysis and the numerical example, this study demonstrates that surety-options can coordinate the supply chain and achieve Pareto-improvement by encouraging the retailer to increase marketing efforts and the supplier to improve the quality.
Keywords: supply chain management; sale-surety and quality warranty; risk sharing.
Observations on A Joint Economic-Lot-Size Model for Purchaser and Vendor
by Salem M. Aljazzar, Amulya Gurtu
Abstract: One of the supply chain coordination methods that has been central to the literature is the joint economic lot-sizing (JELS) problems. The JELS methods have shown to reduce the total cost of a supply chain system. This paper revisits the work of (Goyal, 1988), one of the earliest papers on JELS, where the vendor produces an integer multiplier of equal size shipment lots for a buyer and provides three observations on that. Subsequently, two new models have been developed based on the second and third observations. This paper provided numerical examples and sensitivity analyses to illustrate the similarities and differences among all models. The supply chain performance improves with alternate models for a wider range of attributes, while Goyals model provides better results for the specific example.
Keywords: Coordination in supply chains; Joint economic lot-size problem; production policy; EOQ.
A multi-item inventory model for small business - a perspective from India
by Dinesh Shenoy, Hoshiar Mal
Abstract: Micro, small and medium enterprises (MSMEs) in India are focused on improving their inventory management function as part of governments program to increase their contribution to the gross domestic product (GDP). A plethora of inventory models are available in literature; these models are either very complex, or need reliable inventory cost data, or are not applicable to all classes of items and are, therefore, rendered ineffective.
In this paper we have developed and presented a simple, yet effective, model that combines the characteristics of selective inventory control (SIC) and an exchange curve (EC). Combination of these techniques not only allows determination of ordering policy for all items, but also involves managers in decision making, thus providing MSMEs with a solution that is robust and practical. We also describe application of this model to a sample of 30 items in an auto components manufacturing firm. The case study demonstrates ease of implementation of the proposed model as well as solution completeness.
Keywords: Micro; small and medium enterprises (MSME); Selective inventory control (SIC); Exchange curve (EC); Multi-item inventory; Clustering.
Inventory Control Model using Discounted Cash Flow Approach under Multiple Suppliers Trade Credit and Stock Dependent Demand for Deteriorating Items
by R.P. Tripathi, Dinesh Singh, Surabhi Aneja
Abstract: Even though publications on discussed cash flow inventory problem are steadily growing, modeling the managers characteristics and their effect on his/her decisions and planning outcome has not attracted in the text. In order to fill this gap and model authenticity more precisely. This research work develops a new EOQ (Economic Order Quantity) model using discounted cash flow (DCF) approach under multiple suppliers trade credits with stock- linked demand for failing commodities. This paper is a generalization of an offered inventory model with trade credits in which both demand and deterioration are stable. Here the assumption of constant demand relaxed by incorporating the idea of learning in stock- dependent demand using DCF approach. The projected inventory control model using DCF approach and learning in multiple suppliers trade credit has most excellent presentation in competence. Mathematical formulation is provided for three different situations for finding optimal cycle time and all future cash flows. On the basis of optimal solution some useful results are also discussed. Numerical examples are provided to demonstrate the models proposed in this study. Sensitivity analysis is also presented dissimilar parameters.
Keywords: Stock-dependent demand; deterioration; trade credit; cash discount; optimality.