International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Study of Single-supplier Multi-retailer Centralized Supply Chain with Stochastic Discrete Demand
Chunnian Wei, Yihua Wei, PhD

This paper studies a centralized supply chain model with one supplier and multiple retailers, in which demand is discrete and stochastic. According to whether the supply quantity can be control or not, and if the supply quantity can be control, the supply capacity is infinite or finite? Three models are constructed respectively: I. Fixed supply quantity; II. Controllable supply quantity with infinite supply capacity; III. Controllable supply quantity with infinite supply capacity. For Model I and III, some properties of the optimal solution are proved, and the model is simplified according to these properties. On this basis, the corresponding Fast Fourier Transform method is constructed to obtain the optimal solution. For model II, the analytical expression of the optimal solution is obtained. Finally, for each model, an numerical example is used to verify the results.

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