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Title of Journal: Int J Adv Manuf Technol

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Abbravation: The International Journal of Advanced Manufacturing Technology

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Springer-Verlag

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1433-3015

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Optimum coverage of uncertainties in a supply chai

Authors: S Kamal Chaharsooghi Jafar Heydari
Publish Date: 2009/07/23
Volume: 47, Issue: 1-4, Pages: 283-293
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Abstract

Supply chain SC uncertainties are present in both the demand and supply sides of the chain If these uncertainties are not countered appropriately the customer service level CSL and customer satisfaction will decrease and this in turn will lead to a loss of sales volume and SC profitability Maintaining an appropriate level of safety stock as a counteracting solution to SC uncertainties can boost the CSL In traditional decision making the retailer determines the CSL by determining its own safety stock level However the CSL affects the sales volume and profitability of the upstream members This paper investigates the joint decision making on CSL in a twostage SC with a constraint on the retailers order size to analyze the benefits of coordination and cooperation when determining the CSL The results of this study show that CSL coordination can significantly increase the profitability of the SC

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