Using simulation optimization as a decision support tool for supply chain coordination with contracts

Hamidreza Eskandari; Mohamad Darayi; Christopher D. Geiger

doi:10.1109/WSC.2010.5679062

Using simulation optimization as a decision support tool for supply chain coordination with contracts

Hamidreza Eskandari, Mohamad Darayi, Christopher D. Geiger

Engineering Division (Great Valley)

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

6 Scopus citations

Abstract

This paper studies the issue of channel coordination for a supply chain consisting of one supplier and two retailers, facing stochastic demand that is sensitive to both sales effort and retail price. We develop a decision support tool using simulation optimization for supply chain coordination with revenue sharing or buyback contract. In order to represent a real competitive price and effort dependent demand, a new linear demand model is proposed. Due to the stochastic nature of the market demand and the interaction between decision variables, simulation could help us modeling and analyzing the problem. Simulation optimization is then used to find the optimum or near optimum set of decision variables in the cases of centralized supply chain and coordinated supply chain with contracts.

Original language	English (US)
Title of host publication	Proceedings of the 2010 Winter Simulation Conference, WSC'10
Pages	1306-1317
Number of pages	12
DOIs	https://doi.org/10.1109/WSC.2010.5679062
State	Published - Dec 1 2010
Event	2010 43rd Winter Simulation Conference, WSC'10 - Baltimore, MD, United States Duration: Dec 5 2010 → Dec 8 2010

Publication series

Name	Proceedings - Winter Simulation Conference
ISSN (Print)	0891-7736

Other

Other	2010 43rd Winter Simulation Conference, WSC'10
Country/Territory	United States
City	Baltimore, MD
Period	12/5/10 → 12/8/10

All Science Journal Classification (ASJC) codes

Software
Modeling and Simulation
Computer Science Applications

Access to Document

10.1109/WSC.2010.5679062

Cite this

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title = "Using simulation optimization as a decision support tool for supply chain coordination with contracts",

abstract = "This paper studies the issue of channel coordination for a supply chain consisting of one supplier and two retailers, facing stochastic demand that is sensitive to both sales effort and retail price. We develop a decision support tool using simulation optimization for supply chain coordination with revenue sharing or buyback contract. In order to represent a real competitive price and effort dependent demand, a new linear demand model is proposed. Due to the stochastic nature of the market demand and the interaction between decision variables, simulation could help us modeling and analyzing the problem. Simulation optimization is then used to find the optimum or near optimum set of decision variables in the cases of centralized supply chain and coordinated supply chain with contracts.",

author = "Hamidreza Eskandari and Mohamad Darayi and Geiger, {Christopher D.}",

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language = "English (US)",

isbn = "9781424498666",

series = "Proceedings - Winter Simulation Conference",

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note = "2010 43rd Winter Simulation Conference, WSC'10 ; Conference date: 05-12-2010 Through 08-12-2010",

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Eskandari, H, Darayi, M & Geiger, CD 2010, Using simulation optimization as a decision support tool for supply chain coordination with contracts. in Proceedings of the 2010 Winter Simulation Conference, WSC'10., 5679062, Proceedings - Winter Simulation Conference, pp. 1306-1317, 2010 43rd Winter Simulation Conference, WSC'10, Baltimore, MD, United States, 12/5/10. https://doi.org/10.1109/WSC.2010.5679062

Using simulation optimization as a decision support tool for supply chain coordination with contracts. / Eskandari, Hamidreza; Darayi, Mohamad; Geiger, Christopher D.
Proceedings of the 2010 Winter Simulation Conference, WSC'10. 2010. p. 1306-1317 5679062 (Proceedings - Winter Simulation Conference).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

TY - GEN

T1 - Using simulation optimization as a decision support tool for supply chain coordination with contracts

AU - Eskandari, Hamidreza

AU - Darayi, Mohamad

AU - Geiger, Christopher D.

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N2 - This paper studies the issue of channel coordination for a supply chain consisting of one supplier and two retailers, facing stochastic demand that is sensitive to both sales effort and retail price. We develop a decision support tool using simulation optimization for supply chain coordination with revenue sharing or buyback contract. In order to represent a real competitive price and effort dependent demand, a new linear demand model is proposed. Due to the stochastic nature of the market demand and the interaction between decision variables, simulation could help us modeling and analyzing the problem. Simulation optimization is then used to find the optimum or near optimum set of decision variables in the cases of centralized supply chain and coordinated supply chain with contracts.

AB - This paper studies the issue of channel coordination for a supply chain consisting of one supplier and two retailers, facing stochastic demand that is sensitive to both sales effort and retail price. We develop a decision support tool using simulation optimization for supply chain coordination with revenue sharing or buyback contract. In order to represent a real competitive price and effort dependent demand, a new linear demand model is proposed. Due to the stochastic nature of the market demand and the interaction between decision variables, simulation could help us modeling and analyzing the problem. Simulation optimization is then used to find the optimum or near optimum set of decision variables in the cases of centralized supply chain and coordinated supply chain with contracts.

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T2 - 2010 43rd Winter Simulation Conference, WSC'10

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Using simulation optimization as a decision support tool for supply chain coordination with contracts

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