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《Journal of Hunan University(Social Sciences)》 2011-02
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Analysis of the Supply Chain Profit of Perishable Products Based on Customer-Order-Driven Production

YU Jian-liang,NI Jian,LI Yue(College of Business Administration,Hunan University,Changsha 410082,China)  
This paper analyses the supply chain profit of perishable products under two kinds of modes of production and order.Considering a two-stage supply chain composed of one supplier and one retailer,supplier has a traditional low-cost mode of production before sales,as well as a high-cost mode of production based on customer orders which could meet the emergency orders from retailer.Since the market demands for perishable products fluctuate wildly,the mode of production based on customer orders performs better than the traditional pre-sale mode where there is loss of stockout.The research shows that there is a reasonable wholesale price and buy-back price to make the profit of the two modes achieving Pareto optimality when the customer-order-driven production is adopted.All our findings are illustrated by a numerical example.
【CateGory Index】: F274;F224
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