Nowadays, competitions are intensive among Global Supply Chains. Customers always choose the suppliers with fair price, high quality and timely delivery. Late delivery or long lead time may result in both lost sales and loss of goodwill. Effects of Responsiveness on Supply Chain are important, but surprisingly have seldom been pursued in literature. In this paper, we study this issue in both macro and micro points of views as Location problem with Time Constraint and Continuous Review Inventory Model with Dual Prices respectively. Under a considerable likelihood of the occurrence of a stockout, we decrease the incoming demand rate by raising the price, in order to diminish the harmful effect of the stockout. That is the basic idea behind the motivation of Dual Prices Inventory Model. Fo...[ Read more ]

Nowadays, competitions are intensive among Global Supply Chains. Customers always choose the suppliers with fair price, high quality and timely delivery. Late delivery or long lead time may result in both lost sales and loss of goodwill. Effects of Responsiveness on Supply Chain are important, but surprisingly have seldom been pursued in literature. In this paper, we study this issue in both macro and micro points of views as Location problem with Time Constraint and Continuous Review Inventory Model with Dual Prices respectively. Under a considerable likelihood of the occurrence of a stockout, we decrease the incoming demand rate by raising the price, in order to diminish the harmful effect of the stockout. That is the basic idea behind the motivation of Dual Prices Inventory Model. Formulations and numerical examples on these new developed problems will be shown. Finally, we will compare the performances from classical models and suggest directions for further research.