Supply chain coordination with quantity discount policy

Li, Jianli; Liu, Liwen

doi:10.1016/j.ijpe.2005.05.008

Cited by 186 publications

(63 citation statements)

References 17 publications

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“…Pricing is a significant attribute through which a firm executes its competitive strategy and therefore, price is identified as one of the most sensitive factor among the relationship between suppliers and the customers (Li and Liu, 2006). Suppliers have been using discounts as a tool to entice customers to buy (Lau et al 2008, Schotanus et al 2009).…”

Section: Pricing Strategymentioning

confidence: 99%

Supply Chain Management and Challenges Facing the Food Industry Sector in Tanzania

Ruteri¹

2009

IJBM

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The complexities of food supply chain impose enormous challenges to the processors. As compared to multinational food companies operating in Tanzania, local firms have been performing inefficiently or going out of the business because they could hardly withstand the competition. SCM in the food industry sector was studied in a qualitative survey covered 23 food processing firms in Tanzania, with the purposes of identifying the existing supply chain operation, knowledge of SCM concept and challenges facing the sector. The findings of this study suggest that a lot of efforts need to be addressed to ensure that food processors benefit from SCM concept. The understanding of SCM concept among the processors seems to be low, thus, hindering them from taping up the advantages that SCM concept offer. The sector still faces a number of factors which impede the firms to grow fast and compete in the global market. Such factors include technical know-how, research and development, capital, managerial and physical infrastructures.

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Section: Pricing Strategymentioning

confidence: 99%

Supply Chain Management and Challenges Facing the Food Industry Sector in Tanzania

Ruteri¹

2009

IJBM

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“…The quantity is a rebate provided by the seller to the buyer on a perorder basis as an incentive for the buyer to adopt policies that benefit both parties (Cobb & Johnson, 2014). As discussed in the introduction, credit options and price discounts have also been considered in this two-level supply chain as coordination incentives (Chaharsooghi & Heydari, 2010;Chaharsooghi et al, 2011;Li & Liu, 2006).…”

Section: Two-echelon Supply Chainmentioning

confidence: 99%

“…In this two-echelon supply chain model, credit terms (Chaharsooghi & Heydari, 2010), quantity discounts (Li & Liu, 2006;Chaharsooghi, Heydari, & Kamalabadi, 2011), and rebates (Cobb & Johnson, 2014) have been suggested as incentives that allow the supply chain members to divide the cost savings resulting from coordinating their order quantity and reorder point decisions. In each of these cases, LTD is assumed to be normally distributed.…”

Section: Introductionmentioning

confidence: 99%

Mixture Distributions for Modeling Lead Time Demand in Coordinated Supply Chains

Cobb¹,

Johnson²

2014

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This paper introduces a mixture distribution approach to modeling the probability density function for lead time demand (LTD) in problems where a continuous review inventory system is implemented. The method differs from the typical "moment-matching" approach by focusing on building up an accurate, closed-form approximation to the LTD distribution from its components by using mixtures of polynomial functions. First, construction of the lead time distribution is illustrated and the approach is compared to two other possible lead time distributions. This distribution is then utilized to determine optimal order policies in a situation where members of a two-level supply chain coordinate their actions.

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“…Schotanus et al (2009) studied an analytical and empirical basis for one general quantity discount function that can be used to describe the underlying function of almost all different quantity discount types. For a broad literature review on quantity discount few to mention, the reader is referred to (Crama et al 2004, Li and Liu 2006, Lau et al 2007, Burke et al 2008, Mirmohammadi et al 2009). Tang et al (2002) discussed an alternative strategy on improving demand accuracy forecast referred to as advanced booking discount program.…”

Section: Discountsmentioning

confidence: 99%

Advanced Booking Discount Program: A Coordinating Strategy for SMEs Food Processors on Managing Demand Uncertainty

Ruteri¹,

Qi²

2009

IJBM

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Because demand for processed food products is uncertain, the processors face dilemma to satisfy their customers. The processors are unable to sell their products if demand turns out to be low. That is, some of the products will expire, the producer would have been better off by producing less. But if the processors choose to produce less to ensure that the entire products are sold, there will be an excess of demand if demand turns out to be high. In this case the processors would have been better off by choosing to produce large quantity. The dilemma is more experienced by SMEs food processors because they lack enough capital to acquire advanced technologies to assist in decision making. In this paper an attempt has been made to address the coordinating effects of ABD program in managing demand uncertainty. Fruits and vegetables drying factory has been focused as a case study. Theoretical expressions supported by explanatory mathematical equations have been offered. It is noted that the processor may achieve better decisions and managed demand uncertainty once they agree upon information sharing.

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Supply chain coordination with quantity discount policy

Cited by 186 publications

References 17 publications

Supply Chain Management and Challenges Facing the Food Industry Sector in Tanzania

Supply Chain Management and Challenges Facing the Food Industry Sector in Tanzania

Mixture Distributions for Modeling Lead Time Demand in Coordinated Supply Chains

Advanced Booking Discount Program: A Coordinating Strategy for SMEs Food Processors on Managing Demand Uncertainty

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