An order quantity negotiation model for distributor-driven supply chains

Hosang Jung, Bongju Jeong, Chi Guhn Lee

Research output: Contribution to journalArticle

30 Citations (Scopus)

Abstract

We propose a negotiation process to find a contract for a distributor and a manufacturer in a supply chain. The contract is to determine supply quantities from the manufacturer to the distributor for multiple products from different production facilities over time for given prices set by the market. This negotiation process is for distributor-driven supply chains in that the distributor leads the negotiation process by submitting its profit-maximizing order quantities within, while the manufacturer can supply up to the ordered quantities. Numerical studies demonstrate that the proposed negotiation process, while requiring the minimum information revelation to partners, achieves small gap from the solutions of ideal centralized planning model that requires complete information sharing.

Original languageEnglish
Pages (from-to)147-158
Number of pages12
JournalInternational Journal of Production Economics
Volume111
Issue number1
DOIs
Publication statusPublished - 2008 Jan 1

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All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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