Optimizing Supply and Production Quantity in a Two

نویسندگان
doi
10.71762/rvm7-et26
چکیده

This study optimizes supply and production decisions in a two-echelon decentralized supply chain under simultaneous supply, production, and demand uncertainties. Using a Stackelberg game framework, the problem is modeled to optimize the decision variables for both parties. The manufacturer’s order quantity is defined as a coefficient of the maximum demand and must be optimized. The supplier, in turn, determines the optimal quantity of raw material supply based on this order quantity. By deriving the expected profit functions, the optimal values of these decision variables are obtained. Numerical analysis, using uniform and triangular statistical distributions along with sensitivity analysis, reveals several key insights. The optimal raw material supply is a dependent variable of the manufacturer’s order quantity and is determined by the supplier’s costs and the wholesale price. A critical finding is the existence of a lower bound for the wholesale price, which depends solely on the supplier’s costs and is essential for business continuity. Furthermore, the sensitivity analysis indicates that the product’s selling price is the most influential parameter, directly affecting average profit and order quantities, whereas manufacturing cost is the most sensitive parameter, exhibiting an inverse effect. The type of statistical distribution also significantly influences the magnitude of these sensitivities.