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author:

Yang, Zhuolin (Yang, Zhuolin.) [1] | Zheng, Yuting (Zheng, Yuting.) [2] (Scholars:郑宇婷) | Li, Jianbin (Li, Jianbin.) [3] | Zhu, Stuart X. (Zhu, Stuart X..) [4] | Yang, Chao (Yang, Chao.) [5]

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EI Scopus SCIE

Abstract:

This paper proposes a service-oriented manufacturing strategy in a two-echelon supply chain with random demand. When there is no inventory for the retailer to meet demand, customers can choose to order products through the retailer and products will be delivered to them by the manufacturer directly in the promised time, and we call this delivery service in service-oriented manufacturing. We employ a Stackelberg game-theoretic model to analyse the procurement quantity and delivery time decisions by the manufacturer as the leader and the retailer as the follower. Using the performance of the pure-manufacturing strategy as a benchmark, our main results follow. First, the equilibrium strategies of the two players are obtained. Clear decision rules are also given. Second, delivery service in service-oriented manufacturing can be an effective way to reduce the holding cost of the retailer. Third, we describe the customer loss caused by waiting and find how the manufacturer influences procurement quantity of the retailer through the decision of delivery time. Finally, delivery service in service-oriented manufacturing cannot always improve the profit of the manufacturer and the retailer. We give guidance for managers to provide it.

Keyword:

delivery service delivery time inventory procurement Service-oriented manufacturing supply chain management

Community:

  • [ 1 ] [Yang, Zhuolin]Huazhong Univ Sci & Technol, Sch Management, Wuhan, Peoples R China
  • [ 2 ] [Li, Jianbin]Huazhong Univ Sci & Technol, Sch Management, Wuhan, Peoples R China
  • [ 3 ] [Yang, Chao]Huazhong Univ Sci & Technol, Sch Management, Wuhan, Peoples R China
  • [ 4 ] [Zheng, Yuting]Fuzhou Univ, Sch Econ & Management, Fuzhou, Peoples R China
  • [ 5 ] [Zhu, Stuart X.]Univ Groningen, Dept Operat, Groningen, Netherlands

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Source :

INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH

ISSN: 0020-7543

Year: 2023

Issue: 20

Volume: 62

Page: 7581-7597

7 . 0

JCR@2023

7 . 0 0 0

JCR@2023

ESI Discipline: ENGINEERING;

ESI HC Threshold:35

JCR Journal Grade:1

CAS Journal Grade:2

Cited Count:

WoS CC Cited Count: 2

SCOPUS Cited Count: 2

ESI Highly Cited Papers on the List: 0 Unfold All

WanFang Cited Count:

Chinese Cited Count:

30 Days PV: 0

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