TY - JOUR
T1 - The inventory and pricing decisions in a three-echelon supply chain of deteriorating items under probabilistic environment
AU - Maihami, Reza
AU - Govindan, Kannan
AU - Fattahi, Mohammad
PY - 2019/11/1
Y1 - 2019/11/1
N2 - This study addresses the problem of inventory control and pricing in a three-echelon supply chain (SC) with deteriorating items. It is assumed that deterioration and demand and functions of the manufacturer and retailer are probabilistic, and relationship between SC members is according to the “delayed equal-sized shipment inventory policy”. One integrated policy and three non-integrated ones are formulated, and the conditions to obtain the solution are discussed. Through the simulation and sensitivity analysis on an extended numerical example, some managerial implications are presented. Moreover, a compensation policy is used for evaluation of the benefits and losses related to non-integrated policies.
AB - This study addresses the problem of inventory control and pricing in a three-echelon supply chain (SC) with deteriorating items. It is assumed that deterioration and demand and functions of the manufacturer and retailer are probabilistic, and relationship between SC members is according to the “delayed equal-sized shipment inventory policy”. One integrated policy and three non-integrated ones are formulated, and the conditions to obtain the solution are discussed. Through the simulation and sensitivity analysis on an extended numerical example, some managerial implications are presented. Moreover, a compensation policy is used for evaluation of the benefits and losses related to non-integrated policies.
KW - Deteriorating items
KW - Integrated policy
KW - Inventory policy
KW - Pricing
KW - Three-echelon supply chain
UR - http://www.scopus.com/inward/record.url?scp=85073012798&partnerID=8YFLogxK
U2 - 10.1016/j.tre.2019.07.005
DO - 10.1016/j.tre.2019.07.005
M3 - Article
AN - SCOPUS:85073012798
VL - 131
SP - 118
EP - 138
JO - Transportation Research, Part E: Logistics and Transportation Review
JF - Transportation Research, Part E: Logistics and Transportation Review
SN - 1366-5545
ER -