An Inventory Decision Model in a Two-Echelon Supply Chain

摘要

The two-echelon supply chain in this paper comprises one supplier and one retailer, and the products are perishable and sold over a single selling season. After discussing the traditional newsvondor problem, this paper introduces a buy back contract, and the buy back price is relevant with the wholesale price. Our research shows that the performance of the supply chain always can be improved through introducing a buy back contract And this paper also discusses the impacts brought by the discount factor. A numerical example is introduced to illustrate all our findings.