Optimizing supply chain collaboration based on joint replenishment and channel coordination

This paper proposes a joint replenishment program coupled with a channel coordination practice, to investigate their effect on supply chain improvements. We formulated several supply chain models, with a manufacturer supplying a family of products to a retailer, and the products sharing a common production facility. The models illustrate the challenge of integrating multi-items with multi-echelon production and replenishment. In addition, a saving-sharing mechanism, through a quantity discount scheme, is proposed so that Pareto improvements (i.e., one party is better off and the other is no worse off) can be achieved among channel participants. © 2004 Elsevier Ltd. All rights reserved.