1. Supply Chain Coordination Mechanism Logistics Cost Optimization Analysis
- Author
-
Hong Xiang Zhu and Qiang Yang
- Subjects
Supply chain risk management ,Supply chain management ,Operations research ,Supply chain ,General Engineering ,Vendor-managed inventory ,Inventory theory ,Service management ,Business ,Cost optimization ,Mechanism (sociology) - Abstract
This paper deals with a two-stage supply chain including one supplier and one purchaser. The two coordination mechanisms: traditional supply chain and vendor-managed inventory, are analyzed on their logistics cost optimization capabilities under the centralized and decentralized decision-making conditions. The conclusions are that the logistics costs are same under the centralized decision-making; vendor-managed inventory coordination mechanism is better than traditional supply chain coordination mechanism under the decentralized decision-making.
- Published
- 2013