Next Article in Journal
Preliminary Evaluation of the Influence of Surface and Tooth Root Damage on the Stress and Strain State of a Planetary Gearbox: An Innovative Hybrid Numerical–Analytical Approach for Further Development of Structural Health Monitoring Models
Next Article in Special Issue
A Shoreline Evolution Model with a Groin Structure under Non-Uniform Breaking Wave Crest Impact
Previous Article in Journal / Special Issue
An Application of Optimal Control to Sugarcane Harvesting in Thailand
Article

Effect of Additional Order in Two-Stage Supply Chain Contract under the Demand Uncertainty

1
Department of Mathematics, Faculty of Science, Mahidol University, Bangkok 10400, Thailand
2
Centre of Excellence in Mathematics, CHE, Bangkok 10400, Thailand
*
Author to whom correspondence should be addressed.
Academic Editors: Yongwimon Lenbury, Ravi P. Agarwal, Philip Broadbridge and Dongwoo Sheen
Received: 1 March 2021 / Revised: 19 March 2021 / Accepted: 19 March 2021 / Published: 22 March 2021
In this work, mathematical models are formulated in order to investigate the effect of the additional order on the expected total profit of a two-stage supply chain. A multi-period buyback contract between a supplier and a retailer under the demand uncertainty is considered. Under the contract, an advance order is submitted to the supplier in advance when the demand is unknown, and an additional order can be made at the beginning of each period after the previous period demand is realized. The impact of the coordination on the supply chain’s expected total profit is also considered. The results show that the additional order does not always increases the supply chain profit. The additional order increases the supply chain profit only when both the retailer and supplier are coordinated. Under the decentralized system with the buyback contract, the retailer tends to order less in an advance order to reduce the risk. This leads to the higher cost due the additional order after the demand is realized. As a result, it is lowers the supply chain profit. Moreover, the sensitivity analysis is performed using numerical studies in order to observe the behavior of the expected total profit of the supply chain. View Full-Text
Keywords: demand uncertainty; dynamic programming; multiple periods; sensitivity analysis; supply chain coordination demand uncertainty; dynamic programming; multiple periods; sensitivity analysis; supply chain coordination
Show Figures

Figure 1

MDPI and ACS Style

Chueanun, S.; Suwandechochai, R. Effect of Additional Order in Two-Stage Supply Chain Contract under the Demand Uncertainty. Computation 2021, 9, 37. https://0-doi-org.brum.beds.ac.uk/10.3390/computation9030037

AMA Style

Chueanun S, Suwandechochai R. Effect of Additional Order in Two-Stage Supply Chain Contract under the Demand Uncertainty. Computation. 2021; 9(3):37. https://0-doi-org.brum.beds.ac.uk/10.3390/computation9030037

Chicago/Turabian Style

Chueanun, Suphannee, and Rawee Suwandechochai. 2021. "Effect of Additional Order in Two-Stage Supply Chain Contract under the Demand Uncertainty" Computation 9, no. 3: 37. https://0-doi-org.brum.beds.ac.uk/10.3390/computation9030037

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop