Analysis of quantity discounts for multi-period production planning for single supplier and retailer under uncertain demands

Okihiro Yoshida, Tatsushi Nishi, Guoqing Zhang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

7 Citations (Scopus)

Abstract

Global supply chain management has an important role for globalization of marketplaces and global production. The production and distribution planning for suppliers and retailers with different objectives should be coordinated to minimize the total costs. However, it is well-known that the equilibrium solution for decentralized decision making is inferior to the solution of centralized problem. This study focuses on analysis of quantity discounts for multi-period production planning for single supplier and single retailer under uncertain demands. A Stackelberg equilibrium is analytically derived between single supplier and single retailer where supplier is a leader and retailer is a follower. An optimal discount contract is derived through the optimal solution of the centralized problem.

Original languageEnglish
Title of host publicationIEEM 2014 - 2014 IEEE International Conference on Industrial Engineering and Engineering Management
PublisherIEEE Computer Society
Pages882-886
Number of pages5
ISBN (Electronic)9781479964109
DOIs
Publication statusPublished - 2014
Externally publishedYes
Event2014 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2014 - Selangor, Malaysia
Duration: Dec 9 2014Dec 12 2014

Publication series

NameIEEE International Conference on Industrial Engineering and Engineering Management
Volume2015-January
ISSN (Print)2157-3611
ISSN (Electronic)2157-362X

Conference

Conference2014 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2014
CountryMalaysia
CitySelangor
Period12/9/1412/12/14

Keywords

  • bilevel programming problem
  • multi-period
  • quantity discounts
  • Stackelberg equilibrium

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Industrial and Manufacturing Engineering
  • Safety, Risk, Reliability and Quality

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