物流与供应链管理-3InventoryManagementandRiskPooling教学幻灯片讲义.pptVIP

Distributor Expected Profit Supply Contracts (cont.) Distributor optimal order quantity is 12,000 units Distributor expected profit is $470,000 Manufacturer profit is $440,000 Supply Chain Profit is $910,000 IS there anything that the distributor and manufacturer can do to increase the profit of both? Manufacturer Manufacturer DC Retail DC Stores Fixed Production Cost =$100,000 Variable Production Cost=$35 Selling Price=$125 Salvage Value=$20 Wholesale Price =$80 Supply Contracts Retailer Profit (Buy Back=$55) Retailer Profit (Buy Back=$55) $513,800 Manufacturer Profit (Buy Back=$55) Manufacturer Profit (Buy Back=$55) $471,900 Manufacturer Manufacturer DC Retail DC Stores Fixed Production Cost =$100,000 Variable Production Cost=$35 Selling Price=$125 Salvage Value=$20 Wholesale Price =$80 Supply Contracts Retailer Profit (Wholesale Price $70, RS 15%) Retailer Profit (Wholesale Price $70, RS 15%) $504,325 Manufacturer Profit (Wholesale Price $70, RS 15%) Manufacturer Profit (Wholesale Price $70, RS 15%) $481,375 Supply Contracts Manufacturer Manufacturer DC Retail DC Stores Fixed Production Cost =$100,000 Variable Production Cost=$35 Selling Price=$125 Salvage Value=$20 Wholesale Price =$80 Supply Contracts Supply Chain Profit Supply Chain Profit $1,014,500 Supply Contracts Supply Contracts: Key Insights Effective supply contracts allow supply chain partners to replace sequential optimization by global optimization Buy Back and Revenue Sharing contracts achieve this objective through risk sharing Supply Contracts: Case Study Example: Demand for a movie newly released video cassette typically starts high and decreases rapidly Peak demand last about 10 weeks Blockbuster purchases a copy from a studio for $65 and rent for $3 Hence, retailer must rent the tape at least 22 times before earning profit Retailers cannot justify purchasing enough to cover the peak demand In 1998, 20% of surveyed customers reported that they could not rent the movie they want