Cost effect analysis on channel coordination under general transportation cost structure
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To study the effect of transportation cost structure on supply chain order and coordination policies,a channel composed of one transporter,one manufacturer,and one retailer was considered.The transporter's cost was associated with the truck capacity.The impact of channel joint optimization on system cost saving of transportermanufacturer-retailer was analyzed by assuming a transporter had a general transportation cost structure.For the computationally centralized model,an effective heuristic algorithm was proposed,and a kind of finite time exact algorithm was given on this basis.Under the assumption that the manufacturer held the dominant position in the whole supply chain,the effective coordination for the whole supply chain was achieved by employing both quantity discounts and fixed fees payment simultaneously.To use vehicle capacity effectively,the retailer was discouraged to adopt the large quantities ordering strategy by this mechanism.The numerical examples were presented to verify the effectiveness of proposed algorithms.