Study On Ordering Decisions And Optimization In A Supplier-Dominant Two-stage Supply Chain

With the development of science and technology, social productivity is increasing, mass production model for the suppliers can no longer meet the needs of today’s frequent changes of environment, traditional ordering methods can no longer deal with the demand fluctuation risk for retailers. So the problems how to improve the traditional ordering patterns and strengthen cooperation between enterprises in supply chain members are worthy of further research. In addition, The phenomenon of market players existing resource constraints in practice is common, The case of how the market players existing resource constraints to take decisions to maximize utility issues need further in-depth studies.The research based on the previous related research, whose study object is vendor-dominated two-echelon supply chain, explores not only the improvement of the traditional ordering patterns, but also analyze how the decision makers existing resource constraints (such as funding and capacity) to make decisions in production-related problems.We analyze the improvement of the traditional ordering patterns firstly. The suppliers and retailers response to demand fluctuations passively under traditional ordering patterns, in order to reduce the impact of demand fluctuations, we consider demand updates, which allows retailers revising order quantity during lead period, which realize by quantity flexible contract signed through suppliers and retailers. Because of the amended order occurs when certain costs, at the same time will bring benefits to both supply chain, therefore, cost-sharing and profit-sharing become the focus of this article. By introducing the traditional order decision and demand information updating application under quantity flexible contract, we learn both supply and demand increased welfare when demand information update.Secondly, many scholars considered supply chain decision problem with the assumption of sufficient resources, some scholars considered the problem which supply chain is existing funds constraints recent years, also a fraction of scholars considered the optimal ordered bulk problem where has funds and capacity constraints. Based on the past research, we consider the decision problem of the supply chain who has funds and capacity constraints for the point of newsboy model, we analyze the model. by introducing Kuhn-Tucker conditions.Finally, we preliminary discuss the supply chain financing problems when the retailers purchase options early in the ordering period. Internal and external financing are considered. Different from the previous research, when considering external financing, we assume the external capital markets are fully competitive, when considering internal financing, we suppose it is achieved through supplier order price adjust wholesale price and options.