Quick response strategy with cleaner technology in a supply chain : coordination and win-win situation analysis

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

90 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)3397-3408
Journal / PublicationInternational Journal of Production Research
Volume56
Issue number10
Online published9 Jan 2017
Publication statusPublished - May 2018

Abstract

Quick response strategy (QRS) has been widely adopted in a supply chain where members collect timely market information for better forecasting, and then respond promptly to the market changes by adjusting initial inventory decision. After adopting the QRS, sustainability issues such as greenhouse gas emission and energy waste may be more serious as production lead time is shorter. In this study, due to this dilemma, we develop a two-stage quick response supply chain with cleaner technology, where the manufacturer determines the cleaner technology investment and afterwards the retailer decides the ordering quantity. Based on Bayesian theory, we depict an information updating process for the QRS with cleaner technology. First, we find that the inventory service level significantly affects both manufacturer's and retailer's performance under the QRS with cleaner technology. Moreover, our analytical results indicate that the performance of centralised supply chain system is always better than the decentralised one. As a result, we propose two supply chain contracts, minimum ordering quantity (MOQ) and MOQ with buyback (MOQ-BB) to achieve supply chain coordination. Comparing with the MOQ, the MOQ-BB is more flexible to allow better allocation of the additional' expected profit between the channel members through the buyback price negotiation.

Research Area(s)

  • quick response manufacturing, supply chain coordination, sustainability, sustainable supply chain, Bayesian theory, DEVELOPING-COUNTRIES, FASHION, POLICY, DECISIONS, IMPACTS, REGULATIONS, INVESTMENT, TAX