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Ingeniería y Ciencia
Print version ISSN 1794-9165
Abstract
ARANGO OSPINA, Gerardo; ESCALANTE COTERIO, César and RENDON AGUIRRE, Carolina. Supply channel coordination in a newsvendor model with two allocation quotas. ing.cienc. [online]. 2011, vol.7, n.13, pp.87-110. ISSN 1794-9165.
The motivation for this paper arises from an article written by Jianli Li and Liwen Liu [1] in 2007, extending the classical newsvendor model to a supply chain where the dealer, after depletion of an initial order, is given the option of a second order within an allocation quota prescribed and conditioned by the manufacturer. The paper analyzes coordination of the channel in order to improve the expected benefits of the system. This paper extends the model to allow the newsvendor a second allocation quota at the end of the period, under similar conditions. The possibilities and incentives for channel coordination are studied.
Keywords : channel coordination; newsvendor model; limited reserve; stochastic programming.