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《Journal of Systems & Management》 2009-06
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A Study of Partial Backorder Policy under Random Demand

YANG Zhi-lin~1,TIAN Yu-min~2,YANG Shan-lin~3(1.Department of Mathematics,Hefei University of Technology,Hefei 230009,China;2.Department of Basic Courses;Artillery College of PLA;Hefei 230001,China;3.School of Management,Hefei University of Technology,Hefei 230009,China)  
A Supply Chain Model is developed when partial demand is lost while stocking out.Random demand of a single product with a short lifecycle is satisfied by a retailer and a supplier.When stock-out happens some demand will be lost.Retailer adopts a partial backorder policy to improve his profit level.Optimal quantity decisions are analyzed between integrated supply chain and a decentralized one.Service levels in these two situations are respectively developed.Vertical competition under exogenous random demand has a negative effect on the supply chain: the retailer orders less and the service level decreases.When the supplier is a leader and set the wholesale price to the retailer,a Stackelberg equilibrium is reached between order quantities of the retailer and the wholesale price of the supplier.
【Fund】: 国家自然科学基金资助项目(60975040)
【CateGory Index】: F224;F274
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