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A study on agile ordering optimization based on mixed pricing in supply chain cluster

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1 Author(s)
Guojun Ji ; School of Management, Xiamen University, 361005, Fujian, China

In this paper, the mixed order pricing strategy presented that can effectively motivate the distributors to increase the order quantity and reduce the times of order, especially the times of small quantity replenishment order on the basis of ensuring the same supply chain cluster agility, are presented. The implementation of the mixed order pricing strategy guarantees the same agility of the SMEs in a supply chain cluster and improve the production initiative of manufacturers. Our conclusions reflect longer production plan can be scheduled; the continuity and stability of production can be improved; and the risk of supply interruption of distributors can be reduced. In general, SMEs agile ordering mechanism in the supply chain cluster has been improved under mixed order pricing strategy.

Published in:

Management Science and Industrial Engineering (MSIE), 2011 International Conference on

Date of Conference:

8-11 Jan. 2011