Two-stage VMI Supply Chain Coordination with Stock-dependent Demand for Products
Tian Li-ping
Sun Qun
Abstract：The coordination of one supplier and one retailer supply chain based on the product with stock -dependent demand under the environment of VMI ( vendor managed inventory ) mode is discussed in three steps.Firstly, a model of supply chain is established under centralized decision and the profit function of the whole supply chain worked out .Secondly , in the decentralized decision , the method of revenue sha-ring contract is used to coordinate the supply chain , according to the Stackelberg game .It is found that the method of revenue sharing contract cannot coordinate the supply chain .In the distribution of benefits , the retailer gain more benefits than supplier of the supply chain , and the total income of decentralized decision system is always lower than the centralized decision system .Finally, the method of Nash negotiation is used to coordinate Vendor Managed Inventory supply chain , with the profit of centralized decision-making achieved and Pareto improvement realized .Under the condition of stock-dependent demand , the conclu-sion is that the method of Nash negotiation can coordinate Vendor Managed Inventory supply chain and a -chieve the optimal profits .At last, the conclusion is verified by examples .
Keywords：stock-dependent demandvendor managed inventory ( VMI)revenue sharing contractNash negotiation
Publication Date：2015-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：6( 84-89 )