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A collaborative EPQ inventory model for a three-echelon supply chain with multiple products considering the effect of marketing effort on demand uri icon

Abstracto

  • Abstract. This paper presents an inventory model for a three-echelon supplychain with multiple products and multiple members considering the demandas an increasing function of the marketing e ort. In the proposed inventorymodel, a collaborative approach is studied and an analytical method is appliedto obtain the optimal production lot size and the optimal marketing e ort inorder to achieve the maximum pro ts. Some numerical examples are illustratedto justify the model. Moreover, a sensitivity analysis is well done in order toanalysis the e ect of the changes of key parameters of inventory model on thethe maximum bene ts of all members of the chain.