Study On Supply Chain Inventory Model Under (Q, R) Replenishment Strategy And Product Substitution

The relationship between supply chain enterprises is co-opetitive. It is very significant to study this kind of co-opetition relationship. This paper focuses on the (Q, R) replenishment strategy and substitutable product and detailedly studies inventory decision model of supply chain basing on co-opetition relationship.The impact of supply shake of supplier on the leadtime of retailer is considered. A stochastic inventory model is introduced when assuming the relation between the stockout quantity of supplier and the leadtime of retailer. The analysis shows the relation results in that the safety factor and leadtime of supplier have obvious effect on inventory decision and cost of retailer. The optimal safety factor models under decentralized and centralized decision are compared.Retailer's lead time reduction problem is dealt with in a single-vendor single-buyer inventory model. We consider the case that the buyer's lead time can be shortened by increasing planned vendor's order processing expenditure which is under the control of the vendor. Two models are formulated in this study. An iterative procedure is developed to find the optimal solution and numerical examples are also presented to illustrate the superiority of integrated inventory management.A model including a single-vendor single-buyer with fixed leadtime is presented. The performance of VMI is compared with the performance of traditional inventory policy. We find that under a certain cost condition, although VMI likely reduces the vendor's profit, it, compared with traditional inventory policy, will decrease retail price and consequently bring higher expected profit level for the buyer and the whole supply chain. However, if the cost condition is not satisfied, VMI will result in higher retail price, necessarily lead a lower expected profit for vendor and not necessarily lead to a higher expected profit for the buyer or the whole supply chain.This problem of substitution product is analyzed. An inventory model on substitution product is introduced. This model assumes two retailers supply the same product that can be substitutable each other. For this relationship between two retailers, three different stocking decisions are given and solved. A practical numerical analysis is presented and quantifies the differences. The sensitivity analysis on some important parameter is given.An inventory problem on substitution product considers game between two supply chains. The detailed case is the two kind of product which the two supply chains respectively provide have the same function so that they can be substitutable each other. The impacts of substitution rate and price parameter and cost parameter on order decision and every member's profit of the two supply chain is analyzed and compared on three kinds of condition (namely, RMI for both brands, RMI for one brand and VMI for the other, VMI for both brands).