Supply Chain Decision Model for Deteriorating Goods with Stock-Dependent Demand Rate

To analyze effects of supply chain coordination for deteriorating goods with stock-dependent demand rate, this paper presents decision models for order quantity and ordering cycle under two scenarios (decentralized supply chain, centralized supply chain). Numerical study is carried out to demonstrate the effectiveness of the proposed models, and to analyze the impact of supply chain coordination on supply chain profit. Sensitivity analysis is performed to study the impact of different parameters associated with the model, such as the rate of deterioration, the retailer´s purchase cost, the manufacturer´s production cost, the retailer´s and manufacturer´s holding cost on the supply chain profit increase percentages generated by the supply chain coordination.