Collaborative Policy of the Supply-Hub for Assemble-to-Order Systems with Delivery Uncertainty
This paper considers the collaborative mechanisms of the Supply-Hub in the Assemble-to-Order system (ATO system hereafter) with upstream delivery uncertainty. We first propose a collaborative replenishment mechanism in the ATO system, and construct a replenishment model with delivery uncertainty in...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2014-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2014/625812 |
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| _version_ | 1832548766917328896 |
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| author | Guo Li Mengqi Liu Xu Guan Zheng Huang |
| author_facet | Guo Li Mengqi Liu Xu Guan Zheng Huang |
| author_sort | Guo Li |
| collection | DOAJ |
| description | This paper considers the collaborative mechanisms of the Supply-Hub in the Assemble-to-Order system (ATO system hereafter) with upstream delivery uncertainty. We first propose a collaborative replenishment mechanism in the ATO system, and construct a replenishment model with delivery uncertainty in use of the Supply-Hub. After transforming the original model into a one-dimensional optimization problem, we derive the optimal assembly quantity and reorder point of each component. In order to enable the Supply-Hub to conduct collaborative replenishment with each supplier, the punishment and reward mechanisms are proposed. The numerical analysis illustrates that service level of the Supply-Hub is an increasing function of both punishment and reward factors. Therefore, by adjusting the two factors, suppliers’ incentives of collaborative replenishment can be significantly enhanced, and then the service level of whole ATO system can be improved. |
| format | Article |
| id | doaj-art-68158b5a31b747e3b4f1ff5aeaed1a71 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-68158b5a31b747e3b4f1ff5aeaed1a712025-02-03T06:13:09ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/625812625812Collaborative Policy of the Supply-Hub for Assemble-to-Order Systems with Delivery UncertaintyGuo Li0Mengqi Liu1Xu Guan2Zheng Huang3School of Management and Economics, Beijing Institute of Technology, Beijing 100081, ChinaSchool of Business Administration, Hunan University, Changsha 410082, ChinaEconomics and Management School, Wuhan University, Wuhan 430072, ChinaSchool of Management, Huazhong University of Science and Technology, Wuhan 430074, ChinaThis paper considers the collaborative mechanisms of the Supply-Hub in the Assemble-to-Order system (ATO system hereafter) with upstream delivery uncertainty. We first propose a collaborative replenishment mechanism in the ATO system, and construct a replenishment model with delivery uncertainty in use of the Supply-Hub. After transforming the original model into a one-dimensional optimization problem, we derive the optimal assembly quantity and reorder point of each component. In order to enable the Supply-Hub to conduct collaborative replenishment with each supplier, the punishment and reward mechanisms are proposed. The numerical analysis illustrates that service level of the Supply-Hub is an increasing function of both punishment and reward factors. Therefore, by adjusting the two factors, suppliers’ incentives of collaborative replenishment can be significantly enhanced, and then the service level of whole ATO system can be improved.http://dx.doi.org/10.1155/2014/625812 |
| spellingShingle | Guo Li Mengqi Liu Xu Guan Zheng Huang Collaborative Policy of the Supply-Hub for Assemble-to-Order Systems with Delivery Uncertainty Discrete Dynamics in Nature and Society |
| title | Collaborative Policy of the Supply-Hub for Assemble-to-Order Systems with Delivery Uncertainty |
| title_full | Collaborative Policy of the Supply-Hub for Assemble-to-Order Systems with Delivery Uncertainty |
| title_fullStr | Collaborative Policy of the Supply-Hub for Assemble-to-Order Systems with Delivery Uncertainty |
| title_full_unstemmed | Collaborative Policy of the Supply-Hub for Assemble-to-Order Systems with Delivery Uncertainty |
| title_short | Collaborative Policy of the Supply-Hub for Assemble-to-Order Systems with Delivery Uncertainty |
| title_sort | collaborative policy of the supply hub for assemble to order systems with delivery uncertainty |
| url | http://dx.doi.org/10.1155/2014/625812 |
| work_keys_str_mv | AT guoli collaborativepolicyofthesupplyhubforassembletoordersystemswithdeliveryuncertainty AT mengqiliu collaborativepolicyofthesupplyhubforassembletoordersystemswithdeliveryuncertainty AT xuguan collaborativepolicyofthesupplyhubforassembletoordersystemswithdeliveryuncertainty AT zhenghuang collaborativepolicyofthesupplyhubforassembletoordersystemswithdeliveryuncertainty |