 Lead time variation control using reliable shipment equipment: An incentive scheme for supply chain coordinationJafar Heydari Transportation Research Part E: Logistics and Transportation Review, 2014, vol. 63, issue C, 44-58 Abstract: In this paper, service level coordination is studied in a two-stage supply chain (SC). In the investigated model, a retailer is faced with uncertain lead time (LT) due to shipping time instability. Reducing lead time fluctuations is used as an incentive scheme to induce the retailer for participation in the coordination plan. Range of LT fluctuation which is acceptable for both parties is extracted. It is shown that using more reliable shipping equipment as an incentive could coordinate SC. Under some circumstances, the proposed model can increase SC profitability more than centralized decision making model. Keywords: Supply chain management; Service level coordination; Controllable lead time; Reliable shipment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:63:y:2014:i:c:p:44-58 Ordering information: This journal article can be ordered from DOI: 10.1016/j.tre.2014.01.004 Access Statistics for this article Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier |
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