basic model and the cancellation model? In Section 3.2, we briefly specify the cancellation model. In Section 3.3, we derive the buyer’s optimal ordering policy at stage 2 for the cancellation model. In Section 3.4, we obtain the analytical expressions of the optimal first-stage order quantities for three cases—low, moderate and high service requirement, respectively. We find out the trajectories of the optimal first-stage order quantity, the critical signals associated with the optimal first-stage order quantity and the optimal expected profit with respect to the target service requirement. We also investigate the impact of the forecast quality on the optimal decisions. We compare the basic model and the order cancellation model in Section 3.5. A numerical analysis is presented in Section 3.6. A brief summary is provided in Section 3.7.
Chapter 4 An information updated supply chain with two service level constraints
In this chapter, we study the second extension to our basic model. In the previous two chapters, we assume that the buyer commits to one service level which is evaluated at the second stage. With this assumption, it is possible that the buyer makes very unbalanced orders at stages 1 and 2. However, if the manufacturer has the production capacity limitations, which is the case in many industries, and the manufacturing process requires stability and balancing, the manufacturer may require the buyer to make more balanced orders. In this chapter we 英语论文网 【http://www.51lunwen.org】study the case in which the buyer faces two service constraints.
Chapter 5 Supply contracts in drop-shipping operations with asymmetric demand information
Drop-shipping operations are adopted by more and more internet retailers as well as many multi-channel retailers to fulfill their customer orders. In drop-shipping supply chains, the retailers forward their orders from the customers to the drop-shippers/suppliers, the suppliers who own the inventory pack and deliver the products to the customers directly. By using this operation, the retailers are able to avoid or reduce the costs and risks involved in inventory, warehousing and fulfillment. Drop-shipping also enable the retailers to offer a much wider product selection. This is a big competitive advantage for the internet retailers. For those retailers who have their own inventories, drop-shipping could be a good back-up for out-of-stock items. For the suppliers, a big advantage is that they can charge higher wholesale prices and access a bigger market and more customers. It always does not hurt if someone would like to market your products, consequently, saving your marketing and customer acquisition costs. Moreover, a supplier usually serves multiple retailers, by drop-shipping and the supplier manages whole inventory, demand across the retailers is pooled, which smoothes demand fluctuations.
In a decentralized drop-shipping supply chain in which each party has its own interests, channel inefficien
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