|Table of Contents|

[1] Shi Xuefei, Wang Haiyan,. Design of cost allocation rule for joint replenishmentwith controllable lead time [J]. Journal of Southeast University (English Edition), 2020, 36 (4): 453-464. [doi:10.3969/j.issn.1003-7985.2020.04.011]
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Design of cost allocation rule for joint replenishmentwith controllable lead time()
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Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:
36
Issue:
2020 4
Page:
453-464
Research Field:
Economy and Management
Publishing date:
2020-12-20

Info

Title:
Design of cost allocation rule for joint replenishmentwith controllable lead time
Author(s):
Shi Xuefei;  Wang Haiyan
School of Economics and Management, Southeast University, Nanjing 211189, China
Keywords:
joint replenishment;  controllable lead time;  cost allocation;  cooperative game
PACS:
C934
DOI:
10.3969/j.issn.1003-7985.2020.04.011
Abstract:
To encourage retailers to form cooperative alliances to jointly replenish inventory, considering that the supplier provides a flexible lead time and quantity discount to retailers, a model of average total cost per unit time of periodic joint replenishment is constructed, and an approximate algorithm, which can satisfy the requirement of any given precision, is given. The cost allocation rule in the core of the joint replenishment game is designed based on the cooperative game theory. The numerical experiment results show that the proposed algorithm can quickly solve the joint replenishment problem when the item number is not greater than 640. The retailer’s cost saving rate is always greater than 0, and it increases with the increase in quantity discount and fixed cost after adopting the given cost allocation rule. With the increase in the safety stock level, the retailer’s cost saving rate increases first and then decreases; and the retailer’s cost saving rate increases with the increase in the size of the alliance, but it decreases as the number of product category increases. The proposed cost allocation rule can reduce the retailer’s cost up to 20%, which is conducive to forming a cooperative coalition.

References:

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Memo

Memo:
Biographies: Shi Xuefei(1988—), male, Ph.D. candidate; Wang Haiyan(corresponding author), male, doctor, professor, hywang@seu.edu.cn.
Foundation item: The National Natural Science Foundation of China(No.71531004).
Citation: Shi Xuefei, Wang Haiyan. Design of cost allocation rule for joint replenishment with controllable lead time[J].Journal of Southeast University(English Edition), 2020, 36(4):453-464.DOI:10.3969/j.issn.1003-7985.2020.04.011.
Last Update: 2020-12-20