Collaboration for a two-echelon supply chain in the pulp and paper industry: the use of incentives to increase profit

@article{Lehoux2011CollaborationFA,
  title={Collaboration for a two-echelon supply chain in the pulp and paper industry: the use of incentives to increase profit},
  author={Nadia Lehoux and Sophie D'Amours and Yannick Frein and Andr{\'e} Langevin and Bernard Penz},
  journal={Journal of the Operational Research Society},
  year={2011},
  volume={62},
  pages={581-592}
}
In our research, we study the case of a pulp and paper producer who decides to establish a partnership with one buyer. Using two different types of relationship, namely a traditional system without any collaboration scheme and Collaborative Planning, Forecasting and Replenishment, we develop decision models describing the producer and the buyer planning processes. We also identify which approach is more profitable for each actor as well as for the network, based on real costs and parameters… CONTINUE READING
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Key Quantitative Results

  • Our results show that using incentives increases the system's profit by up to 4% if parameters are well defined.
  • Our results show that using incentives increases the system’s profit by up to 4% if parameters are well defined.

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