
Inventory models and coordination in fashion retail supply chains 43
Figure 3.3 The effects brought about by changes in D.
Figure 3.4 The effects brought about by changes in w.
EOQ formula, a smaller a will help to enhance inventory cost saving and coordination.
Finally, since the system inefficiency for this case comes from the difference between
w and m, when w is larger or m is smaller, the effect on cost saving brought about
by coordination is more prominent (because the double marginalization effect is more
significant which means the decentralized system is less efficient).
3.5.2 The newsvendor problem-based model
Based on the set of numerical ...