Consignment Inventory Coordination Under Stochastic Demand Conditions

Consignment is a joint inventory management model in the supply chain environment.Under the consignment stock mode,Both sides of the supply chain cooperates with each other.It helps to reduce the shortage risk of the seller,but at the same time increases the cost and risk of the vendor.Therefore,it is necessary to explore the cost changes of the supply chain parties under the consignment inventory model and seek appropriate mechanisms to balance the interests of all parties in the supply chain.Based on a comprehensive analysis of domestic and foreign research results,this paper makes a qualitative and quantitative comparison analysis between the consignment inventory model and the traditional inventory model,and establishes the consignment inventory cost model under the condition of single-vendor single-seller and single-vendor multiple-sellers.And coordinate the interests of vendor and sellers under the consignment stock model.The research has certain theoretical significance and practical value.(1)According to the operation mechanism of traditional inventory and the consignment inventory,the operation mode of two kinds of inventory is explained.A comparative analysis of the differences between the two inventory models in decision making,inventory management,payment of goods,cost classification and replenishment strategies is made.(2)Aiming at the problems of single-vendor single-seller consignment inventory cost and coordination under stochastic demand conditions,The single-vendor single-seller inventory cost model under stochastic demand conditions is established by theoretical derivation and mathematical modeling.The optimal solution of traditional inventory and consignment stock under centralized decision is solved.Through numerical analysis,it is proved that the consignment stock model can bring about the reduction of supply chain cost and seller cost,but it will increase the cost of vendor.The cost-sharing contract and the revenue-sharing contract are used to coordinate the interests of vendor and seller under the consignment inventory model.And the sensitivity analysis of relevant decision variables is made.(3)Aiming at the problem of consignment inventory cost of single-vendor multi-sellers under stochastic demand,the cost models of three main objects of vendor,sellers and supply chains were constructed.Through the comparative analysis by arithmetic example,the cost changes of the supply chain and parties under the consignment inventory model are analyzed.The consignment inventory model can reduce the supply chain cost and the cost of each seller,but the vendor's cost will increase.In order to promote the implementation of the consignment stock model,the cost-sharing contract and the revenue-sharing contract are used to coordinate the interests of the suppliers and the various sellers under the consignment stock model.The parameters of Pareto optimal state under two kinds of contracts are obtained respectively,and the validity of the contract is verified by an example.The innovations of this paper is: Starting from the overall optimality of the supply chain,a single-vendor multi-sellers consignment inventory cost model under stochastic demand is established on the foundation of single-vendor single-seller consignment inventory cost model.Through the cost-sharing contract and revenue-sharing contract,the interests of vendor and sellers under the consignment inventory model are coordinated,and the validity of the contract is verified by an arithmetic example.