This paper studies supply chain model for imperfect quality items under which unit price and unit marketing expenditure imposed by the buyer, regulates the demand of the item. It is presumed that with the accustomed supply chain model, all produced items are of good quality, coincidentally, it engrosses some percentage of defective items. Thus, inspection process becomes essential for the buyer to segregate the defective items, which are then sold at discounted price at the end of the screening process. In this paper, a supply chain model is ensued to substantiate the interaction and democracy of the participants in the supply chain, the buyer and seller, is pitched by non-cooperative and cooperative game theoretical approaches. In the non-cooperative method, the Stackelberg game approach is used in which one player behaves as a leader and another one as a follower. The co-operative game approach is based on a Pareto efficient solution concept, in which both the players work together to enhance their profit. Lastly, to demonstrate the significance of the theory of the paper, numerical examples including sensitivity analysis are presented.
Mots-clés : Supply chain, imperfect quality items, game theory, non-cooperative games, cooperative games
@article{RO_2018__52_3_725_0,
author = {Yadav, Rita and Pareek, Sarla and Mittal, Mandeep},
title = {Supply chain models with imperfect quality items when end demand is sensitive to price and marketing expenditure},
journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
pages = {725--742},
publisher = {EDP-Sciences},
volume = {52},
number = {3},
year = {2018},
doi = {10.1051/ro/2018011},
zbl = {1405.90023},
mrnumber = {3868442},
language = {en},
url = {http://archive.numdam.org/articles/10.1051/ro/2018011/}
}
TY - JOUR AU - Yadav, Rita AU - Pareek, Sarla AU - Mittal, Mandeep TI - Supply chain models with imperfect quality items when end demand is sensitive to price and marketing expenditure JO - RAIRO - Operations Research - Recherche Opérationnelle PY - 2018 SP - 725 EP - 742 VL - 52 IS - 3 PB - EDP-Sciences UR - http://archive.numdam.org/articles/10.1051/ro/2018011/ DO - 10.1051/ro/2018011 LA - en ID - RO_2018__52_3_725_0 ER -
%0 Journal Article %A Yadav, Rita %A Pareek, Sarla %A Mittal, Mandeep %T Supply chain models with imperfect quality items when end demand is sensitive to price and marketing expenditure %J RAIRO - Operations Research - Recherche Opérationnelle %D 2018 %P 725-742 %V 52 %N 3 %I EDP-Sciences %U http://archive.numdam.org/articles/10.1051/ro/2018011/ %R 10.1051/ro/2018011 %G en %F RO_2018__52_3_725_0
Yadav, Rita; Pareek, Sarla; Mittal, Mandeep. Supply chain models with imperfect quality items when end demand is sensitive to price and marketing expenditure. RAIRO - Operations Research - Recherche Opérationnelle, Tome 52 (2018) no. 3, pp. 725-742. doi : 10.1051/ro/2018011. http://archive.numdam.org/articles/10.1051/ro/2018011/
[1] , Supplier pricing and lot sizing when demand is price sensitive. Eur. J. Oper. Res. 78 (1994) 334–354. | DOI | Zbl
[2] and , Joint approach for setting unit price and the length of the credit period for a seller when end demand is price sensitive. Int. J. Prod. Econ. 83 (2003) 115–122. | DOI
[3] , and , Nonlinear Programming: Theory and Algorithms. John Wiley and Sons (1993). | Zbl
[4] and , Generalized Convexity and Optimization: Theory and Application. Springer-Verlag, Berlin, Heidelberg, USA (2009). | MR | Zbl
[5] , Observation on: economic production quantity model for items with imperfect quality. Int. J. Prod. Econ. 67 (2000) 201. | DOI
[6] and , Coordination in a single-vendor multi buyer supply chain by synchronizing delivery and production cycles. Transp. Res. Part E 43 (2007) 90–111. | DOI
[7] , , and , Channel coordination and transaction cost: a game-theoretic analysis. Ind. Market. Manag. 35 (2006) 178–190. | DOI
[8] , , and , A game theoretic approach to quantity discount problem. Decis. Sci. 25 (1994) 153–168. | DOI
[9] and , An acquisition policy for a multi-supplier system with a finite-time horizon. Comput. Oper. Res. 34 (2007) 2758–2773. | DOI | Zbl
[10] , , and , Pricing in revenue management for multiple firms competing or customers. Eur. J. Oper. Res. 98 (2005) 1–16.
[11] and , An economic order quantity model with defective items and shortages. Int. J. Prod. Econ. 106 (2007) 544–549. | DOI
[12] and , Seller buyer models of supply chain management with an asymmetric information structure. Int. J. Prod. Econ. 123 (2010) 146–154. | DOI
[13] , and , A game theory approach in seller buyer supply chain. Eur. J. Oper. Res. 195 (2009) 442–448. | DOI | MR | Zbl
[14] , Coordination strategies for production and marketing in a functionally decentralized firm. AIIE Trans. 12 (1982) 126–132. | DOI | MR
[15] and , Note on: economic production quantity model for items with imperfect quality – a practical approach. Int. J. Prod. Econ. 77 (2002) 85–87. | DOI
[16] and , An EOQ model for deteriorating items with time-dependent demand under inflationary condition. Int. J. Math. Math. Sci. 5 (2007) 139–147. | MR | Zbl
[17] and , Economic order quantity model for deteriorating items with imperfect quality. Rev. Investig. Oper. 32 (2011) 107–113. | Zbl
[18] , and , Credit financing for deteriorating imperfect-quality items under inflationary conditions. Int. J. Serv. Oper. Inform. 6 (2011) 292–309.
[19] , and , Credit financing in economic ordering policies for defective items with allowable shortages. Appl. Math. Comput. 219 (2013) 5268–5282. | MR | Zbl
[20] , and , Effects of inspection on retailer’s ordering policy for deteriorating items with time-dependent demand under inflationary conditions. Int. J. Syst. Sci. 44 (2013) 1774–1782. | DOI | MR | Zbl
[21] and , Optimal inventory policies under decreasing cost functions via geometric programming. Eur. J. Oper. Res. 132 (2001) 628–642. | DOI | Zbl
[22] and , Optimal inventory policies for an economic order quantity model with decreasing cost functions. Eur. J. Oper. Res. 165 (2005) 108–126. | DOI | MR | Zbl
[23] , Channel coordination and quantity discounts. Manag. Sci. 41 (1995) 1509–1522. | DOI | Zbl
[24] , , and , Credit financing for deteriorating imperfect quality items with allowable shortages. Decis. Sci. Lett. 5 (2016) 45–60. | DOI
[25] , Determining order quantity and selling price by geometric programming. Decis. Sci. 24 (1993) 76–87. | DOI
[26] and , Optimal and heuristic decision strategies for integrated product and marketing planning. Decis. Sci. 24 (1993) 1203–1213. | DOI
[27] and , Optimal coordination strategies for production and marketing decisions. Oper. Res. Lett. 22 (1998) 41–47. | DOI | Zbl
[28] , and , Optimal demand rate, lot sizing, and process reliability improvement decisions. IIE Trans. 28 (1996) 941–952. | DOI
[29] and , Economic order quantity for items with imperfect quality: revisited. Int. J. Prod. Econ. 112 (2008) 808–815. | DOI
[30] , and , Retailer’s ordering policy for deteriorating imperfect quality items when demand and price are time-dependent under inflationary conditions and permissible delay in payments. Int. J. Procure. Manag. 10 (2017) 461–494.
[31] , Optimal lot sizing, process quality improvement and setup cost reduction. Oper. Res. 34 (1986) 137–44. | DOI | Zbl
[32] and , Economic production cycles with imperfect production process. IIE Trans. 18 (1986) 48–55. | DOI
[33] , Stochastic Processes, 2nd edn. Wiley, New York (1996). | MR | Zbl
[34] , and , An economic order quantity model of imperfect quality items with partial backlogging. Int. J. Syst. Sci. 42 (2011) 1409–1419. | DOI | MR | Zbl
[35] , and , Optimal production and marketing planning. Comput. Optim. Appl. 30 (2005) 195–203. | DOI | MR | Zbl
[36] , and , A game theoretic approach for two echelon supply chains with continuous depletion. Int. J. Manag. Sci. Eng. Manag. 6 (2011) 408–412.
[37] and , Economic production quantity model for items with imperfect quality. Int. J. Prod. Econ. 64 (2000) 59–64. | DOI
[38] , An EOQ model with delay in payments and stock dependent demand in the presence of imperfect production. Appl. Math. Comput. 218 (2012) 8295–8308. | MR | Zbl
[39] and , An EPQ model with inflation in an imperfect production system. Appl. Math. Comput. 217 (2011) 6159–6167. | MR | Zbl
[40] , and , Buyer vendor coordination models in supply chain management. Eur. J. Oper. Res. 175 (2006) 1–15. | DOI | Zbl
[41] , EOQ under inspection costs. Prod. Invest. Manag. 29 (1988) 22–24.
[42] , Inventory management in supply chains: a bargaining problem. Int. J. Prod. Econ. 93–94 (2005) 253–262. | DOI
[43] , A bargaining model with asymmetric information for a single supplier–single buyer problem. Inventory management in supplychains: a bargaining problem. Eur. J. Oper. Res. 171 (2006) 516–535. | DOI | Zbl
[44] , , and , Impact of trade credit and inflation on retailer’s ordering policies for non-instantaneous deteriorating items in a two-warehouse environment. Int. J. Prod. Econ. 176 (2016) 154–169. | DOI
[45] , and , Economic lot-sizing games. Eur. J. Oper. Res. 176 (2007) 1117–1130. | DOI | MR | Zbl
[46] , and , Optimal inventory model for items with imperfect quality and shortage backordering. Omega 35 (2007) 7–11. | DOI
[47] and , Two-echelon supply chain models: considering duopolistic retailers’ different competitive behaviors. Int. J. Prod. Econ. 103 (2006) 104–116. | DOI
[48] and , Asymmetric information supply chain models with credit option. Ind. Eng. Manag. Syst. 12 (2013) 264–273.
Cité par Sources :
