Research on Supplier Collaboration of Daily Consumer Goods under Uncertainty of Supply and Demand

Tianwen Song, Qiang Zhang, Junmu Ran and Wenxue Ran
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Tianwen Song: Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China
Qiang Zhang: Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China
Junmu Ran: Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China
Wenxue Ran: Logistics School, Yunnan University of Finance and Economics, Kunming 650221, China

Sustainability, 2021, vol. 13, issue 10, 1-15

Abstract: This paper establishes the decentralized decision-making model of consumer goods, the active collaboration model of consumer goods suppliers, and the decentralized decision-making model of customized consumer goods. Through formula derivation and simulation, the benefit and influence differences of the three modes are compared. This paper studies the influence of supplier’s active collaboration on the supply and demand instability of consumer goods and discusses the ideal value of supply chain inventory control. In China’s modern circular economy, the inventory control of the consumer goods supply chain is unscientific and nonstandard. We discuss a new inventory control method and study the ideal value of supply chain inventory control. It helps reduce the inventory shortage loss caused by the uncertainty of daily consumer goods, improve the efficiency of the supply chain, enhance the liquidity of supply chain inventory to achieve the purpose of increasing economic value. It has reference value for the inventory control of consumer goods in other countries and regions. The results show that under certain conditions, the horizontal collaboration between suppliers can improve the completeness of consumer goods. The collaboration between suppliers can reduce the hidden dangers caused by the uncertainty of supply and demand and significantly reduce the total inventory cost of manufacturers and improve profits.

Keywords: daily consumer goods; uncertain supply; supplier collaboration; horizontal collaboration; inventory cost (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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