| Author | Udomsak Wacharapinchai |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Industrial and Manufacturing Engineering |
| Publisher | Asian Institute of Technology |
| Abstract | This thesis studies a coordination issue with customer return policy of a two level supply chain that composes of one manufacturer and one retailer in make-to-order environment. A composite contract that composes of buy back and quantity flexibility contracts is used as a coordination mechanism.
In mathematical model development part, we consider two systems that are centralized and decentralized systems. The manufacturer and the retailer are considered as a same organization in centralized system. The centralized system is used as a benchmark compared with the decentralized system.
In numerical experiments, all parameter are set follow the critical conditions that are analyzed in the mathematical models. Then, each critical parameter is varied in order to study the effect of the parameters to the whole supply chain’s profit.
Finally, we show that the two level supply chain can be coordinated with appropriate value of contract parameters. However, the profit allocation between the retailer and the manufacturer in the decentralized system might not reach perfectly in comparison to the centralized system. Therefore, if the retailer offers to share his profit to the manufacturer, it might be better in profit allocation between both of them. |
| Year | 2014 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Engineering (IE) |
| Chairperson(s) | Huynh Trung Luong; |
| Examination Committee(s) | Bohez, Erik L.J.;Pisut Koomsap ; |
| Scholarship Donor(s) | AIT Fellowship ; |