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If the warehouse underestimates the retailer's service level, less order quantity ((Q_{0})) will be placed to satisfy the retailer's demand.
Similar(59)
In contrast to the coordination literature, we show that channel integration may result in smaller order quantity and less accurate inspection than in a decentralized supply chain if product quality is uncertain.
However, higher prices are less profitable for the buyer who would further reduce his order quantity.
The authors showed that the credit period contract is preferred to induce the retailer to increase its order quantity when the manufacturer interest rate is less than the retailer interest rate.
(Q) order quantity.
Order quantity for the buyer.
the retailer's order quantity.
In addition, optimal order quantity is calculated.
Q the order quantity for the retailer.
Q i order quantity for product i.
Retailer's order quantity (decision variable).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com