An integrated vendor–buyer model with stock-dependent demand

We develop an integrated vendor–buyer model for a two-stage supply chain. The vendor manufactures the product and delivers it in a number of equal-sized batches to the buyer. The items delivered are presented to the end customers in a display area. Demand is assumed to be positively dependent on the amount of items displayed. The objective is to maximize total supply chain profit. The numerical analysis shows that buyer–vendor coordination is more profitable in situations when demand is more stock dependent. It also shows that the effect of double marginalization provides a link between the non-coordinated and the coordinated case.     

Optimizing shipment,ordering and pricing policies in a two-stage supply chain with price-sensitive demand

In this paper we focus on a two-stage supply chain consisting of one vendor and one buyer. We develop an integrated production–inventory–marketing model to determine the relevant profit-maximizing decision variable values. The model proposed is based on the joint total profit of both the vendor and the buyer, and it finds out the optimal ordering, shipment and pricing policies. We are able to ascertain the optimal decision variable values employing an analytical solution procedure. The numerical evidence suggests that it is more beneficial for the buyer and the vendor to cooperate with each other when the demand is more price sensitive.     

US–Indonesia trade at commodity level and the role of the exchange rate

Previous studies that assessed the impact of currency depreciation on inpayments and outpayments of Indonesia with her major trading partners did not find much significant results, especially in the trade with the United States. We wonder whether insignificant link between the real rupiah-dollar rate and Indonesia’s inpayments and outpayments with the United States is due to aggregation bias. To answer this question, we disaggregate the trade flows between the two countries by commodity and consider the sensitivity of inpayments of 108 US exporting industries and outpayments of 32 US importing industries from Indonesia. We find that most industries respond to exchange rate changes in the short run. In the long run, however, 32 inpayments schedule and 17 outpayments schedule are significantly affected. A 1% real depreciation of the dollar was found to improve US trade balance by 1.8%.     

The impact of exchange rate volatility on commodity trade between the US and Thailand

The impact of exchange rate volatility on trade flows continues to occupy the international finance literature. More recent studies have deviated from the traditional approach of using aggregate trade flows and have employed trade data at commodity level. This study investigates the impact of exchange rate uncertainty on the trade flows of 118 US exporting industries to Thailand and 41 US importing industries from Thailand. We find that exchange rate uncertainty has short-run effects on the trade flows of most industries. In the long-run, the main determinants of the trade flows are the level of economic activity in both countries.     

The J-Curve and Japan–China commodity trade

Previous studies that have tested the J-Curve phenomenon for Japan or China employed either aggregate trade data between each country and the rest of the world, or aggregate bilateral data between two trade partners. These studies have found no support for the J-Curve. Suspecting that their models could suffer from aggregation bias, in this paper, we disaggregate bilateral trade flows between the two countries and examine trade by 73 industries. We find evidence of the J-Curve phenomenon in 24 industries, a unique finding for trade between Japan and China.