Project Details
Abstract
This research is motivated by the affiliated Chang Gung Memorial Hospitals, which mainly
adopt “consignment inventory” in medical supply. “Consignment inventory” is any stock that the
supplier has placed in the warehouse without charge. It remains the property of the supplier until it
is actually used and should not be included in the value of the stock on hand. It might create a
condition of shared benefit for both the supplier and the retailer (consignee) by supply chain
coordination. However, in the practice, problems might happen such as retailers have limited shelf
spaces, and the inventory on shelves might influence customers’ demand; these important factors
have never been considered in research in inventory management.
This project intends to consider a single-manufacturer, single-buyer supply chain problem
where the supplier produces a single item product and delivers it to the retailer on the basis of
consignment policy. Demand on the retailer side is stock dependent. Decision variables in this
model include the supplier’s replenishment lot sizes and the retailer’s number of reorders. The
objective is the sale revenue less than the total costs including the supplier’s holding, setup, and
replenishment cost and the retailer’s carrying cost on shelf.
We will derive the upper bound of the retailer’s shelf spaces making different the supplier’s
replenishment policy. Sensitivity analysis through numerical examples includes that (1) how do
both the number and the lost sizes of supplier’s replenishment get changed as the retailer’s shelf
inventory increases? ; and (2) as the retailer’s shelf spaces approach the upper bound, how does the
supplier’s replenishment policy react? Research results of this project might enable managers to
move from a reactive mode to a proactive one by taking both the retailer’s and the associated
supplier’s perspective.
Project IDs
Project ID:PB10108-2807
External Project ID:NSC101-2221-E182-050
External Project ID:NSC101-2221-E182-050
Status | Finished |
---|---|
Effective start/end date | 01/08/12 → 31/07/13 |
Keywords
- Stock-dependent demand
- Consignment stock
- Limited shelf space
Fingerprint
Explore the research topics touched on by this project. These labels are generated based on the underlying awards/grants. Together they form a unique fingerprint.