Research on Profit Distribution of VMI with Stockout Cost Considered
Huo Yan-fang
Deng Quan
Wu Bo-wen
Abstract:Targeting at profit distribution , with stockout cost considered , supply chain parameters are ana-lyzed based on the comparison of inventory cost modes before and after vendor-managed inventory ( VMI) . It is found that the responsibilities and benefits between suppliers and retailers are inconsistent .Then, Stackelberg model , revenue-sharing contracts , and price contracts are applied to establish a profit distribu-tion model.With this model, purchasing price of a retailer and revenue-sharing coefficient are decided .A numerical example is used to validate the proposed model .
Keywords:stockout costvendor-managed inventory ( VMI)profit distributionStackelberg model
Publication Date:2014-01-01
Online Publishing Date:2025-08-15(First online date of this platform, not the publication date of the document)
Pages:7( 118-124 )
Industrial Engineering Journal

Industrial Engineering Journal

PKUISTIC
ISSN:1007-7375
Year, Vol.(Issue):2014,(2)