Supply chain benefits from advanced customer commitments

被引:80
作者
Gilbert, SM
Ballou, RH
机构
[1] Univ Texas, Coll Business Adm, Dept Management, Austin, TX 78733 USA
[2] Case Western Reserve Univ, Weatherhead Sch Management, Cleveland, OH 44106 USA
关键词
supply chain coordination; inventory; lead time;
D O I
10.1016/S0272-6963(99)00012-1
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
Buyers are frequently encouraged through price discounts to buy in certain ways - purchase in large quantities or purchase in advance of their needs. Ideally, these pricing incentives can lead to lower costs for both the buyer and the seller. In this paper, a situation is examined where a steel distributor faces stiff competition in its highly undifferentiated service offerings and price is the primary factor in attracting sales. A model is developed that quantifies the benefits to the supplier from obtaining advanced commitments from downstream customers. This model can be used to suggest the maximum price discount that can be offered to customers to encourage them to commit to their orders in advance. Careful balancing of the advanced ordering time with the price discount can lead to cost reductions for both members of the supply channel. (C) 1999 Elsevier Science B.V. All rights reserved.
引用
收藏
页码:61 / 73
页数:13
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