A Supply Chain Coordination Model for Multiple Retailers under Supply Chain Management

Abstract

This paper studies in a two level supply chain composed of one manufacturer and multiple retailers, how participants cooperate to enhance the chain's value. Assuming the manufacturer produces to orders with only one equipment and retailers face fixed market demands, the paper first analyzes the chaos in the EOQ policy, then proposes a new coordinate model, as is called 'the ideal ordering model' to eliminate the chaos. Some relations of ordering quantities, production speed and market demands under the new model are obtained at the same time.