Research On Operational Decision-making For A Supply Chain Under Vendor Managed Consignment Inventory Mode

Since the Industrial Revolution, humans have continued pursuing rapid economic growth, and the development of the global economy have gained remarkable performances. But in recent years, the extensive mode of economic growth has brought many environmental problems. The greenhouse effect caused by carbon dioxide also becomes more and more serious, such as global warming, extreme weather and others. In China, fog haze weather makes our breathing like "taking drugs", and seriously threatens to people’s health. Reducing carbon dioxide emissions has become an international consensus.As the second largest carbon dioxide emissions country, China actively assumes responsibility for emissions reductions, and constantly breaks down the macro-level reduction targets into a micro-enterprise level. Transforming the development mode and combining emissions reduction with economic interests organically have become the new trend. In the low-carbon economy, it is still of great significance to study how to balance carbon emissions and economic benefits, make production decisions, and build a new supply chain contract whether from the business operational or the policy standpoint.There were two aspects being discussed in the thesis.Firstly, it studied the inventory decision of a two-stage supply chain incluing one supplier and one retailer. As a starting point, bullwhip effect caused by loss of information would stepwise expand from the downstream to the upstream. Through analysis and comparisons of costs and performance, it was proved that the vendor managed inventory was a mitigation strategy to deal with bullwhip effect.Secondly, the emission reduction and production optimization of supply chain system contained two carbon suppliers and a retailer were studied. In the random demand, centralized decision-making model and total decentralized decision-making model were formulated respectively under consignment contracts with revenue-sharing. Optimal decisions in two situations were analyzed and compared using game theory. The result showed that the chain-wide profit under the centralized decision-making is always greater than that in other one. The manufacturer’s optimal reduction level and production are negatively correlated with the retailer’s share proportion, and the optimal share proportion is a boundary.