Fresh product supply chain coordination using vendor managed inventory and consignment with revenue sharing over a finite planning horizon

IF 1.1 Q3 BUSINESS, FINANCE
Winda Narulidea, Ahmad Rusdiansyah, Sri Gunani Partiwi
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Abstract

Selling fresh food products can be challenging due to their perishability, which often results in significant losses. To address this issue and maximize profits, we have developed a contract that takes into account the costs of investing in preservation technology over a finite planning horizon. The arrangements incentivize the supplier and the retailer to establish coordination and determine not only the optimal price and schedule for replenishment but also the optimal investment required in preservation technology. We investigate the effectiveness of vendor managed inventory (VMI) and consignment with revenue-sharing models through an analysis of pricing and inventory decisions, followed by evaluating the channel performance and the distribution of profits. Contract parameters are defined under the equilibrium state to achieve advantageous relationships among supply chain partners by improving profits for both channel members. The finding shows that a VMI and consignment mechanism with a side payment arrangement could help coordinate channels in a non-cooperative setting. Still, performing the contract is easier in a cooperative setting. Both members could achieve optimal decisions for the wide-channel system without any additional payments, leading to increased profitability for all supply chain members. In an alternative approach, the retailer has the option to offer a subsidy alongside the revenue-sharing-only trading terms within a VMI and consignment by incorporating a generalized revenue-sharing scheme to facilitate coordination with the supplier.

Abstract Image

在有限的规划期限内,利用供应商管理库存和寄售以及收入共享来协调生鲜产品供应链
由于新鲜食品易腐烂,销售新鲜食品具有挑战性,往往会造成重大损失。为了解决这个问题并实现利润最大化,我们制定了一种合同,其中考虑到了在有限的规划期限内投资保鲜技术的成本。这种安排激励供应商和零售商建立协调,不仅确定最佳价格和补货计划,而且确定保鲜技术所需的最佳投资。我们通过对定价和库存决策的分析,研究了供应商管理库存(VMI)和寄售与收入共享模式的有效性,然后评估了渠道绩效和利润分配。在均衡状态下定义合同参数,通过提高渠道成员的利润来实现供应链合作伙伴之间的有利关系。研究结果表明,带有附带付款安排的 VMI 和寄售机制有助于协调非合作环境下的渠道。不过,在合作环境下,履行合同更容易。双方成员可以在不支付任何额外费用的情况下实现广渠道系统的最优决策,从而提高供应链所有成员的利润率。在另一种方法中,零售商可以选择在 VMI 和寄售中除了只分享收入的贸易条款外,还提供补贴,方法是纳入一个通用的收入分享计划,以促进与供应商的协调。
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来源期刊
CiteScore
3.30
自引率
18.80%
发文量
26
期刊介绍: The?Journal of Revenue and Pricing Management?serves the community of researchers and practitioners dedicated to improving understanding through insight and real life situations. Each article emphasizes meaningful answers to problems whether cutting edge science or real solutions. The journal places an emphasis disseminating the best articles from the best minds and benchmarked businesses within the field of Revenue Management and Pricing.Revenue management (RM) also known as Yield Management (YM) is a management activity that marries the diverse disciplines of operations research/management science analytics economics human resource management software development marketing economics e-commerce consumer behaviour and consulting to manage demand for a firm's products or services with the goal of profit maximisation. From a practitioner standpoint RM encompasses a range of activities related to demand management including pricing segmentation capacity and inventory allocation demand modelling and business process management.Journal of Revenue and Pricing Management?aims to:formulate and disseminate a body of knowledge called 'RM and pricing' to practitioners educators researchers and students;provide an international forum for a wide range of practical theoretical and applied research in the fields of RM and pricing;represent a multi-disciplinary set of views on key and emerging issues in RM and pricing;include a cross-section of methodologies and viewpoints on research including quantitative and qualitative approaches case studies and empirical and theoretical studies;encourage greater understanding and linkage between the fields of study related to revenue management and pricing;to publish new and original ideas on research policy and managementencourage and engage with professional communities to adopt the Journal as the place of knowledge excellence i.e. INFORMS Revenue Management & Pricing section AGIFORS and Revenue Management Society and Revenue Management and Pricing International Ltd.Published six times a year?Journal of Revenue and Pricing Management?publishes a wide range of peer-reviewed practice papers research articles and professional briefings written by industry experts - including:Practice papers - addressing the issues facing practitioners in industry and consultancyApplied research papers - from leading institutions on all areas of research of interest to practitioners and the implications for practiceCase studies - focusing on the real-life challenges and problems faced by major corporations how they were approached and what was learnedModels and theories - practical models and theories which are being used in revenue managementThoughts - assessment of the key issues new trends and future ideas by leading experts and practitionersApprentice - the publication of tomorrows ideas by students of todayBook/conference reviews - reviewing leading conferences and major new books on RM and pricingThe Journal is essential reading for senior professionals in private and public sector organisations and academic observers in universities and business schools - including:Pricing AnalystsRevenue ManagersHeads of Revenue ManagementHeads of Yield ManagementDirectors of PricingHeads of MarketingChief Operating OfficersCommercial DirectorsDirectors of SalesDirectors of OperationsHeads of ResearchPricing ConsultantsProfessorsLecturers
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