arbiter
JournalsPricingAccount

Coordinating the VMI supply chain of deteriorating products through supply contract

Anyarin Sakrujiratham & Huynh Trung Luong

International Journal of Logistics Systems and Management2026https://doi.org/10.1504/ijlsm.2026.150959article
AJG 1
Weight
0.50

What the paper says

This study considers a two-echelon supply chain with one vendor and one retailer for a deteriorating item under the vendor-managed inventory (VMI) policy. The study considers the time to deterioration follows a Weibull distribution, price-sensitive demand, and shortages are allowed and completely backlogged. We analyse the coordination of the VMI supply chain through a contract mechanism, i.e., a revenue-sharing contract. First, we formulate and compare the decentralised VMI and centralised models. Next, we propose a revenue-sharing contract to coordinate the decentralised VMI supply chain. The applicability of the proposed model is illustrated through numerical examples and sensitivity analyses. The results show that the supply chain's profit under the decentralised VMI system with a revenue-sharing contract increases and can reach the profit of the centralised system. The revenue-sharing contract can perfectly coordinate the VMI decentralised supply chain, increase the supply chain's profit significantly, and allocate the total supply chain profit to members fairly.

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1504/ijlsm.2026.150959

Or copy a formatted citation

@article{anyarin2026,
  title        = {{Coordinating the VMI supply chain of deteriorating products through supply contract}},
  author       = {Anyarin Sakrujiratham & Huynh Trung Luong},
  journal      = {International Journal of Logistics Systems and Management},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1504/ijlsm.2026.150959},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Coordinating the VMI supply chain of deteriorating products through supply contract

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.