4.2.1 22-Stage Sequential SupplyChain (no contract)*A buyer and a supplier.ManufacturerDCRetail DCManufacturer*Buyer's activities:* generating a forecast* determining how many units to order from the supplier*placing an ordertothe suppliersoasto optimize his ownprofit*PurchasebasedonforecastofcustomerdemandSupplier'sactivities:* reacting to theorderplaced bythebuyer* Make-To-Order (MTO) policy6
4.2.1 2-Stage Sequential Supply Chain (no contract) A buyer and a supplier. Buyer’s activities: generating a forecast determining how many units to order from the supplier placing an order to the supplier so as to optimize his own profit Purchase based on forecast of customer demand Supplier’s activities: reacting to the order placed by the buyer. Make-To-Order (MTO) policy 6
Swimsuit Example* 2 Stages:* a retailer who faces customer demand* a manufacturer who produces and sells swimsuits to theretailer.RetailerInformation:* Summer season sale price of a swimsuit is $125 per unit.* Wholesale price paid by retailer to manufacturer is $8o perunit.* Salvage value after the summer season is $20 per unitManufacturer information* Fixed production cost is $1o0.000* Variableproduction costis $35perunit
Swimsuit Example 2 Stages: a retailer who faces customer demand a manufacturer who produces and sells swimsuits to the retailer. Retailer Information: Summer season sale price of a swimsuit is $125 per unit. Wholesale price paid by retailer to manufacturer is $80 per unit. Salvage value after the summer season is $20 per unit Manufacturer information: Fixed production cost is $100,000 Variable production cost is $35 per unit 7
2StagessupplychainsystemnosupplycontractStoresFoxedcost=S100.000Variablecost=$35Wholeprice=$80price=$125S=$20D.CManufacturerRetailDCRetailer marginal profit is =$45 (=125-80)$Manufacturer marginalprofit=$45(=80-35)$4
8 price=$125 s=$20 Manufacturer D.C Retail DC Stores Foxed cost =$100,000 Variable cost =$35 Whole price =$80 2 Stages supply chain system no supply contract Retailer marginal profit is =$45 (=125-80)$ Manufacturer marginal profit = $45 (=80-35)$
What Is theOptimalOrderQuantity?Demand0.2830%Kieiord0.2225%0.1820%115%0.110.110.110%5%0%8000 10000 12000 14000 16000 18000Quantity
What Is the Optimal Order Quantity? 0.11 0.11 0.28 0.22 0.18 0.1 0% 5% 10% 15% 20% 25% 30% 8000 10000 12000 14000 16000 18000 概率 销量 需求假设 9 Quantity Demand Probability
WhatIstheOptimal OrderQuantity?* Retailer marginal profit is the same as the marginalprofit of the manufacturer, $45.* Retailer's marginal profit for selling a unit duringthe season, $45, is smaller than the marginal loss,$6O. associated with each unit sold at the end ofthe season to discount stores.*Optimal order quantitydepends on marginal profitand marginal loss but not on the fixed cost.Retailer optimal policy is to order 12,000 units foran average profit of $470,700. detail...10
What Is the Optimal Order Quantity? Retailer marginal profit is the same as the marginal profit of the manufacturer, $45. Retailer’s marginal profit for selling a unit during the season, $45, is smaller than the marginal loss, $60, associated with each unit sold at the end of the season to discount stores. Optimal order quantity depends on marginal profit and marginal loss but not on the fixed cost. Retailer optimal policy is to order 12,000 units for an average profit of $470,700. detail. 10