Implementing a three-echelon integrated model for quality promotion and setup cost reduction
並列篇名：
實現高品質提升和降低整備成本的三階整合模型
摘要：
For the JIT buyer, to reduce inventory cost is an important purpose in the supply chain logistic system. Overall system optimal benefits are considered, for the purpose of maximization of supply chain surplus. Traditionally, most of the literatures deal with vendor-buyer two-echelon integrated inventory model. In practice, distribution center (DC) widespread exists. Coordination of three parties or more than three parties will have more managerial implications than relatively two parties. We first recall the three-echelon distribution system which includes the manufacturer, the DC and the retailer. In order to motivate the buyer to cooperate, we follow the literature paper to consider a cooperative strategy. These include the analysis of the impact of (1) quality improvement investment (2) reducing setup cost investment. The numerical results reveal the overall system cost is reduced significantly under the three-echelon integrated model with optimal setup and quality.
