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Cash flow- and Inventory-oriented Coordination of the Supply Chain

Authors/Editors: Asseburg, Holger
Hofmann, Christian
Published: 2003
Type: Further Publications
ISBN/ISSN: 978-3642073465
Published by: Supply Chain Management and Reverse Logistics, hrsg. v. Harald Dyckhoff, Richard Lackes und Joachim Reese, Berlin et al.
Additional information: S. 221-243


In this paper we describe a cash flow-oriented and an inventory-oriented approach to model the supply chain and characterize the determination of the inventory holding cost based on the capital tied up in inventory. Our study focuses on a three-tiered supply chain consisting of a component manufacturer, a carrier, and a buyer performing a final assembly operation. We differentiate between a simultaneous and a successive coordination of the supply chain. Based on numerical examples we determine efficiency differences of the coordination concepts. Sensitivity analyzes additionally show the parameters influence on the efficiency differences.