Direct/indirect delivery decisions in a collaborative supply distribution network

Supply chain management is very critical in today's global business environment. With the development of modern communication methods the costs of communication have gone down considerably and have opened new horizons for improvement in the domain of supply chain management. The direct/indirect delivery model focuses on facilitating communication between various nodes in the supply distribution network in order to achieve disinter-mediation and thus reducing the distribution costs. A Join/Leave/Remain protocol is suggested to facilitate direct/indirect delivery decisions through collaboration between the manufacturer and the retailer. A simulation model is built to study the impact of change in direct delivery percentage on the Costs of distribution network and the demand fulfillment rate of the retailer. An Order delivery protocol is suggested for managing the orders on a daily basis to maintain a high demand fulfillment rate. The model evaluates the impact of change in direct delivery percentage on the inventory policy of the retailer and the distribution center. A simulation model is built in accordance to the J/L/R and the Order delivery protocol and its effect on the Costs of the network, inventory level of the distribution center and the operational parameters of the retailers were studied.