Abstract
This paper addresses an intertemporal inventory competition between a supplier (a provider, manufacturer) and a retailer engaged in a supply chain. The papers focus is on the effect of capacity constraints on both parties when demands are seasonal. The paper provides a comparative study of two solution approaches, one is based on supply chain competition and the other is based on system wide optimization. Our results demonstrate that with dynamic inventory competition, the retailer reduces inventory costs by reducing the response period to higher demands while increasing the supply requests compared to the system-wide optimal approach. As a result, the suppliers inventory costs increase. An example illustrating these particular facets of the problem and its application is presented and discussed in light of the supplier and the retailer coordinating policies.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 682-688 |
| Number of pages | 7 |
| Journal | International Journal of Production Economics |
| Volume | 131 |
| Issue number | 2 |
| DOIs | |
| State | Published - Jun 2011 |
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Keywords
- Inventory management
- Supply chains
ASJC Scopus subject areas
- Industrial and Manufacturing Engineering
- Business, Management and Accounting(all)
- Management Science and Operations Research
- Economics and Econometrics
Cite this
Inter-temporal inventory competition and the effects of capacity constraints. / Kogan, Konstantin; Tapiero, Charles.
In: International Journal of Production Economics, Vol. 131, No. 2, 06.2011, p. 682-688.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Inter-temporal inventory competition and the effects of capacity constraints
AU - Kogan, Konstantin
AU - Tapiero, Charles
PY - 2011/6
Y1 - 2011/6
N2 - This paper addresses an intertemporal inventory competition between a supplier (a provider, manufacturer) and a retailer engaged in a supply chain. The papers focus is on the effect of capacity constraints on both parties when demands are seasonal. The paper provides a comparative study of two solution approaches, one is based on supply chain competition and the other is based on system wide optimization. Our results demonstrate that with dynamic inventory competition, the retailer reduces inventory costs by reducing the response period to higher demands while increasing the supply requests compared to the system-wide optimal approach. As a result, the suppliers inventory costs increase. An example illustrating these particular facets of the problem and its application is presented and discussed in light of the supplier and the retailer coordinating policies.
AB - This paper addresses an intertemporal inventory competition between a supplier (a provider, manufacturer) and a retailer engaged in a supply chain. The papers focus is on the effect of capacity constraints on both parties when demands are seasonal. The paper provides a comparative study of two solution approaches, one is based on supply chain competition and the other is based on system wide optimization. Our results demonstrate that with dynamic inventory competition, the retailer reduces inventory costs by reducing the response period to higher demands while increasing the supply requests compared to the system-wide optimal approach. As a result, the suppliers inventory costs increase. An example illustrating these particular facets of the problem and its application is presented and discussed in light of the supplier and the retailer coordinating policies.
KW - Inventory management
KW - Supply chains
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UR - http://www.scopus.com/inward/citedby.url?scp=79954423396&partnerID=8YFLogxK
U2 - 10.1016/j.ijpe.2011.02.014
DO - 10.1016/j.ijpe.2011.02.014
M3 - Article
VL - 131
SP - 682
EP - 688
JO - International Journal of Production Economics
JF - International Journal of Production Economics
SN - 0925-5273
IS - 2
ER -