Please use this identifier to cite or link to this item:
Full metadata record
DC FieldValueLanguage
dc.contributor.authorChakraborty, Abhishek
dc.contributor.authorChatterjee, Ashis Kumar
dc.descriptionChakraborty, Abhishek, XLRI Xavier School of Management, Jamshedpur, Jharkhand 831001, India; Chatterjee, Ashis Kumar, Indian Institute of Management Calcutta, Diamond Harbour Road, Kolkata, West Bengal 700104, India
dc.descriptionISSN/ISBN - 03772217
dc.descriptionDOI - 10.1016/j.ejor.2016.02.001
dc.description.abstractJust-In-Time (JIT) system involves frequent shipments of smaller batch sizes from the supplier to the buyer. For the buyer, it results in the reduction of the inventory holding cost. However, it is often accompanied by an increase in the set up cost for the supplier. Thus, the supplier may be reluctant to switch to the JIT mode unless he is assured of some form of compensation. In this paper, we introduce a pricing scheme where the buyer offers the supplier an increase in the wholesale price, to encourage the supplier to switch to the JIT mode. Such a pricing scheme may be termed as a surcharge. We develop the economics of surcharge pricing as a supply chain coordinating mechanism under JIT environment. We also establish the equivalence of surcharge pricing with other common coordination mechanisms like Quantity Discount (QD) and Joint Economic Lot Sizing (JELS) model. � 2016 Elsevier B.V. All rights reserved.
dc.publisherEuropean Journal of Operational Research
dc.publisherElsevier B.V.
dc.subjectInformation asymmetry
dc.subjectSupply chain coordination
dc.subjectSupply chain management
dc.subjectSurcharge pricing
dc.titleA surcharge pricing scheme for supply chain coordination under JIT environment
Appears in Collections:Operations Management

Files in This Item:
There are no files associated with this item.

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.