A Supply Chain Model with Imperfect Product and Backorder

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A Supply Chain Model with Imperfect Product and Backorder

Journal Title: 河南科技大学学报（自然科学版） - Year 2017, Vol 38, Issue 5

Abstract

A single-manufacturer single-retaile supply chain with imperfect product and shortages was developed. The operations and decisions of the members in the supply chain were studied. The expected profits per unit time of the manufacturer and the retailer were derived by using the well-known renewal-reward theorem. The concavity of the profit functions was proved, and the optimal decisions and the maximum profits of the both were obtained. The sensitivity of the important parameters that influence the decisions was analyzed through numerical experiments. The results show that when the shortage cost increases, both the manufacturer and retailer profits decrease. The price elasticity index has obvious influence on the profits of the manufacturer and the retailer. Thus a balance between prices and demand should be found to survive both the manufacturer and the retailer. The effect of defective rate on the profit of the manufacturer is more obvious than that on the profit of the retailer.

Authors and Affiliations

Shaoying QIU, Xiaoshen LI

Keywords

supply chain; policy; backordering; imperfect product;

EP ID EP478118
DOI -
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