Analysis on Optimal Model of Short-Life-Cycle Products Supply Chain Based on Two Ordering Opportunities

This paper analyzes the problem of quantity decision and production planning in a supply chain, which is composed of one manufacturer and one retailer to meet the random demand of short-life-cycle products. To study the coordination of two ordering strategy, an optimization function aiming at maximizing total expected profits is established. Then the model is analyzed by the use of the numerical method, and the results of one ordering opportunity with those of two ordering opportunities under different parameters are compared. Then we show that two ordering opportunities strategy can not only improve the expected profits of the supply chain, but also effectively coordinate the supply chain system.