Dynamic pricing and lot sizing for a newsvendor problem with supplier selection, quantity discounts, and limited supply capacity

Jadidi, Omid; Jaber, Mohamad Y.; Zolfaghri, Saeed; Pinto, Roberto; Firouzi, Fatemeh

doi:10.1016/j.cie.2021.107113

Cited by 22 publications

(7 citation statements)

References 53 publications

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“…Models in this category optimize the tradeoff and interaction among several aspects of interest taking into account restrictions and concerns such as lot sizing [74], dynamic pricing [75], single or multiple sourcing [76], order allocation [77], and quantity discounts [78].…”

Section: Mathematical Methodsmentioning

confidence: 99%

Green Supplier Selection in the Automobile Industry: A Comprehensive Framework for Multi-Criteria Decision Analysis

Ghosh

Bhowmik

Sinha

et al. 2023

Preprint

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This research proposes a comprehensive framework to evaluate green suppliers. A real-world green supplier selection (GSS) problem is considered in which three India-based automobile manufacturing organizations, namely Supplier 1, Supplier 2, and Supplier 3 are selected for the evaluation. Initially, fourteen important criteria are extracted from literature and experts’ suggestion, which encompasses both the environmental, economic, and operational aspects of sustainability. Firstly, data is collected through the development of a questionnaire, formation of an expert committee, and carrying out interviews with the experts. Secondly, an integrated multi-criteria decision-making (MCDM)-multivariate approach is proposed in which the item analysis is used to examine the internal consistency of data, the principal component analysis (PCA) is used to calculate the weights of the parameters. Finally; the simple additive weighting (SAW) method is used to determine the performance scores of the case organizations for ranking and benchmarking purpose. The result reveals that Supplier 3 is the benchmark supplier as it gains the highest performance score. The result also recommends that collaboration with suppliers for green purchasing is the most influential parameter for GSS. This research may assist policymakers to strategically select the optimum green supplier for sustainability.

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Section: Mathematical Methodsmentioning

confidence: 99%

Green Supplier Selection in the Automobile Industry: A Comprehensive Framework for Multi-Criteria Decision Analysis

Ghosh

Bhowmik

Sinha

et al. 2023

Preprint

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“…Some scholars study how to achieve price discrimination by using the QD (Buchanan, 1952; Gabor, 1955; Dolan, 1987). Some scholars regard the QD as an efficiency-increasing scheme to shift the inventory holding cost to buyers or to increase the logistics system efficiency in a distribution channel (Jadidi et al ., 2021; Jackson and Munson, 2016; Mansini et al ., 2012; Sawik, 2010). And some scholars study channel coordination by QD, which is the most widely studied.…”

Section: Literature and Reviewmentioning

confidence: 99%

Quantity-based or share-based? Discount schemes for the manufacturer when facing two competing retailers

Zhou

Yang²

2023

MSCRA

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PurposeThe authors investigate the manufacturer's choice of discount schemes in a supply chain with competing retailers.Design/methodology/approachUsing a game-theoretic model, the authors build two discount frameworks and compare and analyze the effects of different discount schemes on the performance of supply chain members.FindingsThe authors find that the retail price (market demand) in the quantity discount scheme is always higher (lower) than that in the market share discount scheme. The authors also find that the retailers' preference for discount schemes is antithetical to the manufacturer's preference in most cases. However, under certain conditions, there will be a win-win situation where Pareto-optimization occurs between the manufacturer and retailers when they choose the same discount scheme.Research limitations/implicationsOn the one hand, the authors assume that the two retailers are symmetrical in market size and operation efficiency. It would be interesting to study the effect of different discount schemes on retailers when the retailers have different market sizes or operating efficiency. On the other hand, the authors study the manufacturer's choice of discount schemes in a supply chain with one common manufacturer and two competing retailers. However, in practice, there exist other supply chain structures. Future research can examine the problem of choices of discount schemes in other different supply chain structures.Practical implicationsThis paper help retailers and manufacturers to choose the best discount schemes.Social implicationsThis paper suggests that a high discount scale is not always beneficial (detrimental) to retailers (the manufacture).Originality/valueThe authors build two discount schemes (the quantity and the market share) in a supply chain consisting of one manufacturer and two retailers, and the authors focus on the effects of different discount schemes on the competition between two retailers. By comparing the two discount schemes, the authors study which discount scheme is the better choice for the manufacturer when facing competing retailers.

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“…Rahimi et al ( 2019 ) developed a risk-averse sustainable multi-objective mathematical model in order to design and plan a network of the supply chain under uncertainty by incorporating conditional value at risk (CVaR) into the basic configuration of the two-stage stochastic programming. Jadidi et al ( 2021 ) considered the joint pricing and sourcing decision problem for a buyer purchasing a product from a set of suppliers who offer quantity discounts. The buyer, in each period, had to determine retail price and the order quantities from the suppliers therefore, model formulated as mixed-integer nonlinear programming one, and solved it.…”

Section: Literature Reviewmentioning

confidence: 99%

A sustainable supply chain network considering lot sizing with quantity discounts under disruption risks: centralized and decentralized models

et al. 2022

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This study proposes a framework for the main parties of a sustainable supply chain network considering lot-sizing impact with quantity discounts under disruption risk among the first studies. The proposed problem differs from most studies considering supplier selection and order allocation in this area. First, regarding the concept of the triple bottom line, total cost, environmental emissions, and job opportunities are considered to cover the criteria of sustainability. Second, the application of this supply chain network is transformer production. Third, applying an economic order quantity model lets our model have a smart inventory plan to control the uncertainties. Most significantly, we present both centralized and decentralized optimization models to cope with the considered problem. The proposed centralized model focuses on pricing and inventory decisions of a supply chain network with a focus on supplier selection and order allocation parts. This model is formulated by a scenario-based stochastic mixed-integer non-linear programming approach. Our second model focuses on the competition of suppliers based on the price of products with regard to sustainability. In this regard, a Stackelberg game model is developed. Based on this comparison, we can see that the sum of the costs for both levels is lower than the cost without the bi-level approach. However, the computational time for the bi-level approach is more than for the centralized model. This means that the proposed optimization model can better solve our problem to achieve a better solution than the centralized optimization model. However, obtaining this better answer also requires more processing time. To address both optimization models, a hybrid bio-inspired metaheuristic as the hybrid of imperialist competitive algorithm (ICA) and particle swarm optimization (PSO) is utilized. The proposed algorithm is compared with its individuals. All employed optimizers have been tuned by the Taguchi method and validated by an exact solver in small sizes. Numerical results show that striking similarities are observed between the results of the algorithms, but the standard deviations of PSO and ICA–PSO show better behavior. Furthermore, while PSO consumes less time among the metaheuristics, the proposed hybrid metaheuristic named ICA–PSO shows more time computations in all small instances. Finally, the provided results confirm the efficiency and the performance of the proposed framework and the proposed hybrid metaheuristic algorithm.

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Dynamic pricing and lot sizing for a newsvendor problem with supplier selection, quantity discounts, and limited supply capacity

Cited by 22 publications

References 53 publications

Green Supplier Selection in the Automobile Industry: A Comprehensive Framework for Multi-Criteria Decision Analysis

Green Supplier Selection in the Automobile Industry: A Comprehensive Framework for Multi-Criteria Decision Analysis

Quantity-based or share-based? Discount schemes for the manufacturer when facing two competing retailers

A sustainable supply chain network considering lot sizing with quantity discounts under disruption risks: centralized and decentralized models

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