A note on "Price discount based on early order commitment in a single manufacturer-multiple retailer supply chain"

Huachun Xiong, Jinxing Xie and Miao Wang

European Journal of Operational Research, 2011, vol. 211, issue 1, 208-212

Abstract: In a recent paper by Xie et al. [Xie, J., Zhou, D., Wei, J.C., Zhao, X., 2010. Price discount based on early order commitment in a single manufacturer-multiple retailer supply chain. European Journal of Operational Research 200, 368-376], the authors have studied the early order commitment (EOC) strategy for a decentralized, two-level supply chain consisting of a single manufacturer and multiple retailers. They fail to provide an algorithm to determine the optimal EOC periods to minimize the total supply chain cost. This note proposes a polynomial-time algorithm to find the optimal solutions, and provides a new set of sufficient conditions under which the wholesale price discount scheme coordinates the whole supply chain.

Keywords: Supply; chain; management; Early; order; commitment; 0-1; programming; Supply; chain; coordination; Wholesale; price; discount; contract (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:211:y:2011:i:1:p:208-212

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