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Order decision making based on different statement strategies under stochastic market demand

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Abstract

Based on the stochastic market demand, this paper considers the order decision-making strategies of the supply chain by introducing statement strategies. Consequently, the time-variant variance in the demands of the market is incorporated into the model. The retailer simultaneously determines the purchase time (i.e., lead time) and order quantity, and the manufacturer determines the statement strategy and the reserved profit rate. The results show that the no overtime statement strategy can induce the retailer to place more orders in advance by limiting the available order quantity within the available time. Finally, we also adopt numerical examples to support the conclusion of this paper.

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Authors and Affiliations

  1. School of Business Administration, South China University of Technology, Guangzhou, 510641, China

    Jiangtao Wang, Fei Ye & Xuejun Xu

  2. Economics and Management School of Beihang University, Beijing, 100191, China

    Liwen Wang

  3. School of Business Administration, South China University of Technology, Guangzhou, 510641, China

    Jianjun Yu

Authors
  1. Jiangtao Wang
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  2. Liwen Wang
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  3. Fei Ye
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  4. Xuejun Xu
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  5. Jianjun Yu
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Corresponding author

Correspondence to Jianjun Yu.

Additional information

This work was supported by the National Nature Science Foundation of China under Grant Numbers 71071059, 71001041 and 71172075.

Jiangtao Wang is a Ph.D. candidate in School of Business Administration, South China University of Technology, Guangzhou, China; His M.S degree was granted in Information and Computational Science from South China University of Technology. His Ph.D. research interests are supply chain management and operation management.

Liwen Wang is an associate professor in Management Science & Engineering, Beihang University. His research areas are management science and engineering and project management.

Fei Ye is currently a professor in the Department of Industrial Engineering at Business Administration School, South China University of Technology. His research interests are in the areas of supply chain management, decision making, and services operations management. He has been working on two projects granted by the National Natural Science Fund Commission(NSFC).He has published articles in European Journal of Operational Research, Computers & Industrial Engineering, International Journal of Production Economics and Applied Soft Computing.

Xuejun Xu Ph.D. was a professor and PhD supervisor in School of Business Administration, South China University of Technology, Guangzhou, China; His research areas were production and operation management.

Jianjun Yu Ph.D. is an associate professor in Department of Industrial Engineering, South China University of Technology. He received B. S. degree, M. S. degree and Ph.D. degree from Northwestern Polytechnical University, respectively in 2000, 2003 and 2007, and has worked as a postdoctoral researcher in University of Michigan. His research interests include operation management, optimization, supply chain management and advanced manufacturing systems.

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Wang, J., Wang, L., Ye, F. et al. Order decision making based on different statement strategies under stochastic market demand. J. Syst. Sci. Syst. Eng. 22, 171–190 (2013). https://doi.org/10.1007/s11518-013-5217-6

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  • DOI: https://doi.org/10.1007/s11518-013-5217-6

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