Non-cooperative strategies for production and shipment lot sizing in one vendor-multi-buyer system

The supply chain structure examined in this paper consists of a single vendor (or manufacturer) with multiple heterogeneous buyers (or retailers). A continuous deterministic model is presented. To satisfy buyers demands, the vendor will deliver the product in JIT shipments to each buyer. The production rate is constant and sufficient to meet the buyers’ demands. The product is shipped in discrete batches from the vendor's stock to buyers’ stocks and all shipments are realized instantaneously. Special production-replenishment policies of the vendor and the buyers are analyzed. That is, the production batch is transferred to each buyer in several sub-batches in each production distribution cycle (PDC).This paper offers game model without prices, where agents minimize individual costs. It is a non-cooperative (1+N)-person game model with agents (a single vendor and N-buyers) choosing numbers and sizes of transferred batches. The model describes inventory patterns and cost structure of PDC. It is proved that there exist Nash equilibria in several types of sub-games of the considered game.     

How accurate is the integrated vendor–buyer continuous model?

The classic single-item, deterministic-demand, integrated vendor–buyer model is revisited. The decision problem may also be viewed as that of one centralized firm, dealing with a two-level EOQ-like supply chain with finite production rates. It is sought to optimize the production lot-size and the integral number of its shipments, in equal batches, from the vendor to the buyer. While the problem calls for discrete optimization techniques, we introduced a continuous model where one can take derivatives with respect to both variables. In this short paper, we establish a 98.5% lower bound on the accuracy of this continuous model.     

Vendor selection and the buying process

This paper reports the results of a study dealing with the vendor selection process in organizational buying. Purchasing managers in two different types of organizations assessed the importance of vendor attributes and buyer information sources in connection with two different buying tasks. Theoretical and managerial implications are discussed in connection with: (1) the relative importance of vendor attributes and buyer information sources; and (2) the influence that different buying tasks and different buying organizations have on the importance of vendor attributes and information sources.     

A JIT lot-splitting model for supply chain management: Enhancing buyer–supplier linkage

This study develops a buyer–supplier coordination model to facilitate frequent deliveries in small lot sizes in a manufacturing supply chain. The proposed model, based on the integrated total relevant costs of both buyer and supplier, determines optimal order quantity, the number of deliveries/setups, and shipping quantity over a finite planning horizon in a relatively simple JIT single buyer single supplier scenario. Under deterministic conditions for a single product, we show that the optimal delivery policy adopted by both buyer and supplier in a cooperative manner can be economically beneficial to both parties. It is shown that the optimal delivery size can be unique, regardless of the order quantity and the number of deliveries. Numerical results are also presented.     

Reducing the mean supply delay of spare parts using lateral transshipments policies

Lateral transshipment has been studied lately as a promising policy for increasing the performances of multi-echelon spare parts inventory system. By lateral transshipment spare parts can be moved from one location with excess inventory to another location, at the same echelon, in shortage, with the aim of reducing supply delays of spare parts. This paper will examine the relative effectiveness of two lateral shipments approaches in reducing the mean supply delay (MSD) of a non-repairable item, with respect to a classical policy of no lateral shipments. A simulation model of a two echelon supply network has been implemented and an experiment has been performed by varying different parameters of the supply network, such as the number of warehouses (locations at the lower echelon), the supply lead time from the central depot, the spare parts demand uncertainty, and the size variability of the warehouses. Results show appreciable reductions of MSD when lateral shipments are allowed with respect to the classical policy, in almost every network configuration.     

An integrated production-distribution model for a deteriorating inventory item

We develop an integrated production-distribution model for a deteriorating item in a two-echelon supply chain. The supplier’s production batch size is restricted to an integer multiple of the discrete delivery lot quantity to the buyer. Exact cost functions for the supplier, the buyer and the entire supply chain are developed. These lead to the determination of individual optimal policies, as well as the optimal policy for the overall, integrated supply chain. We outline a procedure for determining the optimal supply chain decisions with the objective of minimizing the total system cost. Our approach is illustrated through a numerical example.     

EOQ models for a coordinated two-level international supply chain considering imperfect items and environmental impact

For a two-level supply chain, models are presented to determine the optimal production-shipment policy for items with imperfect quality in three different scenarios: (a) both the vendor and the buyer are in the same country, (b) the vendor and the buyer are in different countries where the stochastic behavior of the exchange rate between the two countries is modeled using a mean-reverting process, and (c) environmental impact is incorporated in determining the optimal production-shipment policy by taking into account the fixed and variable carbon emission costs. The objective is to minimize the total expected cost per unit time. For each scenario, considering equal shipment size, the total expected cost per unit time is derived and the solution procedure is proposed. Numerical examples are presented and the results are discussed.     

Inventory management in supply chains: A bargaining problem

This paper is focused on supply chain management from the perspective of inventory management. The coordination of order and production policies between buyers and suppliers in supply chains is of particular interest. When a buyer of an item decides independently, he will place orders based on his economic order quantity (EOQ). However, the buyer's EOQ may not lead to a favorable policy for the supplier. A cooperative order and production policy can reduce total cost significantly. Should the buyer have the dominant position to impose his EOQ on the supplier, then consequently no incentive exists for him to deviate from his EOQ in order to choose a cooperative policy. To induce the buyer to order in quantities more favorable to the supplier, the supplier could offer a cooperative policy associated by a side payment to the buyer. The research presented in this paper provides several bargaining models depending on alternative production policies of the supplier. With these bargaining models the offered cooperative policy and the offered side payment can be derived.     

Integrated inventory model for deteriorating items under a multi-echelon supply chain environment

As the industrial environment becomes more competitive, supply chain management has become essential. The objective of this research is to develop a multi-echelon inventory model for a deteriorating item and to derive an optimal joint total cost from an integrated perspective among the supplier, the producer, and the buyer. A computer code is developed to derive the optimal solution. A numerical example is given to illustrate the model. This paper shows that the integrated approach strategy results in the lowest joint total cost as compared with the independent decision approaches.     

The Multiple Listing Service, Commission Splits, and Broker Effort

This paper examines the impact of split commissions on broker effort in MLS sales. The joint effort of brokers to find a buyer for a given listing is maximized when the broker who locates a buyer first receives the entire commission. In contrast, splitting the commission between the listing and finding broker (when they differ) maximizes the joint profits of brokers. When competition among brokers to acquire listings is considered, however, the split brokers most prefer entails a smaller (though still positive) share for the listing broker in order to reduce wasteful competition for listings. While sellers still prefer to pay only the broker who finds a buyer, brokers may not be willing to acquire and share listings under such an arrangement.     

Determinants of Buyer Search in a Housing Market

Using data collected from specially-designed questionnaires, the duration of search by a house buyer is estimated. Duration is measured in two ways: in terms of time and in terms of the number of houses seen. To explain this data, several features must be added to a simple model when search models are applied to a housing market. Many of the statistically significant variables, such as prior information and the quality of information provided by a newspaper or a real estate agent, deal with the provision of information. The type of agency that employs the agent and the characteristics of the buyer have little effect.     

Buyer and supplier attractiveness in a strategic relationship — A dyadic multiple-case study

In a strategic buyer–supplier relationship (BSR), both the buyer and the supplier aim to leverage the relationship for gaining competitive advantage. Since strategic BSR requires a lot of effort from both parties, firms have become very selective in terms of with whom they engage in a strategic BSR. Therefore, both buyers and suppliers must shape their attractiveness in order to get the other party to put effort to the relationship. Towards this end, the present study explores the drivers of buyer and supplier attractiveness in strategic relationship through 43 interviews in six buyer–supplier dyads. We identified four main categories of both buyer and supplier attractiveness: 1) economic-based, 2) behavior-based, 3) resource-based, and 4) bridging-based attractiveness. We find economic- and behavior-based attractiveness strongly present in all dyads, while resource- and bridging-based attractiveness are emphasized when the strategic intent has more explorative elements and when the aim is to leverage the dyadic relationship in developing businesses outside the dyad. We synthesize our results to a model of attractiveness in a strategic BSR, which bring forth dyad considerations of buyer and supplier attraction.     

A co-ordination model combining incentive scheme and co-ordination policy for a single-vendor-multi-buyer supply chain

Incentive scheme and co-ordination policy are substantial components for the co-ordination of a decentralized supply chain system, but there is little work combining the two components as a single decision model (Li and Wang, 2007). This paper proposes a model which incorporates both incentive and co-ordination issues into a single co-ordination model for a single-vendor multi-buyer supply chain. In the proposed model, the co-ordination is achieved by synchronizing ordering and production cycles while price discount, which is based on the buyers’ order intervals, is used as the incentive to motivate buyers to participate in the co-ordination. While the vendor is benefited from the co-ordination by synchronized cycles, the proposed price discount scheme can guarantee that a buyer’s total relevant cost of co-ordination will be reduced when compared with independent optimization. More importantly, the proposed price discount scheme does not require any cost information from the buyers.     

An experimental approach to segmenting buyers of marketing research

Successful industrial market segmentation may often depend on the marketer's ability to identify key characteristics influencing purchase preferences. Environmental, organizational, and personal factors are all potential determinants of buyer response patterns. Recent attention to microsegmentation processes has focused interest on personal level factors and how these are modified by organizational and situational variables. Utilizing a simulated buying experiment, this study explores a simplified approach to microsegmentation that emphasizes information readily available to industrial vendor representatives.     

Coordination of planning and scheduling decisions in global supply chains with dual supply modes

We address the problem of coordinating aggregate planning decisions and short-term scheduling decisions in supply chains with dual supply modes. We consider long lead time, less expensive sea shipments that are based on demand forecast, and responsive but costly air shipments that are based on revised forecast closer to the demand period. The planning problem determines the sea shipment order quantity and inventory level, while the scheduling model determines the schedule and quantity of air shipments. Results from our numerical experiments suggest that our model leads to consistent cost improvements over a wide range of operating scenarios.     

Value-based sales process adaptation in business relationships

In business relationships, the seller is often expected to adapt to the buyer. The main purpose of this study is to understand how business firms adapt their sales processes to the buyer. The resulting framework, which reveals how different modes of adaptation are contingent upon the type of product being purchased, includes three layers: sales process adaptation, seller–buyer relationship orientation, and the purchasing portfolio. The study is a qualitative one and utilizes a retrospective case study, where the main sources of information are in-depth semi-structured interviews with key informants representing the seller and buyer counterparts in the ICT industry. Our study adds to the understanding of how different modes of adaptation are contingent upon the type of item being sold and purchased. Managerial implications include that to strategically adapt, the seller could focus on the purchasing portfolio. Although previous research has recognized adaptation as a central aspect in relationships, how the sales process could be adapted to the buyer has received little attention. This study focuses on the adaptation of sales to strategically match it to the buyer's situation.     

Outsourcing versus joint venture from vendor’s perspective

Even though many studies have discussed outsourcing contracts from the client’s perspective, little research has been done from the vendor’s perspective. In this paper, we consider a vendor’s outsourcing contract decision-making process, during which the market price and the vendor’s operation cost are uncertain. This paper develops real option models to investigate whether a vendor firm should sign an outsourcing contract from its client or establish a joint venture with this client. Our results show that, while the feasibility of an outsourcing contract to the vendor increases with a higher contract price offered by the client, the feasibility of a joint venture depends on market conditions. We also find that there are loss-by-acceptance regions, in which either an outsourcing or a joint venture contract is currently feasible to start, but a vendor may sustain a loss by accepting such a contract.     

浅谈AHP分析法在服装外贸中应用

本文在综合考虑评价服装加工厂商的五个因子的基础上,根据AHP分析法原理和方法,建立起服装加工厂商的层次评价模型,经过数据处理后得出方案层对目标层的权向量,并确定选择服装加工厂商的方案。AHP分析法将服装加工厂商的定性和定量评价有效地结合起来,在当前国内外经济形势下,对于服装外贸企业有效控制生产成本具有一定的借鉴意义。     

Buyers' perspectives of buyer-seller relationship development

Long-term buyer-seller relationships have been a focus of research for several years. The present study draws on interaction/network theory to test a model examining the interaction mechanisms and relationship characteristics of buyer-seller relationships during four progressive phases of relationship development. Data from 174 members of the Institute for Supply Management offer empirical support for the associations proposed in the model, as well as some surprising results. One of the most useful findings of the research is that the patterns of these associations vary as buyer-seller relationships progress through the four phases of relationship development. Specifically: in the awareness phase, joint problem solving increases buyer uncertainty; in the exploration phase, communication quality and joint problem solving increase relationship-specific investments; and in the expansion phase, joint problem solving increases relationship-specific investments and severe conflict resolution increases buyer uncertainty. Seller reputation moderates many of these relationships. The major conclusion of the research is that buyers and sellers should recognize that while information exchange and conflict resolution are important aspects of buyer-seller relationships, their use may not always lead to the desired relationship characteristics. Managerial implications of these findings and further research ideas are presented.