Conclusion

1) It can be concluded: centralized control is beneficial for supply chains facing unstable demand
patterns. For decentralized supply chains, it is feasible to coordinate the whole system by designing an
incentive mechanism which will benefit all members in the system
2) The proposed framework can also be used to track the system from different perspective for example
ordering patterns, distributors internal service level to each retailer, cost distribution over the system to
help inventory manager make better and more informative decisions.
3) The current framework can also be easily extended to study supply chains with various uncertainties
such as demand and random yield, cost functions as well as the replenishment policies, under the
consideration of suppliers capacity constraint.
4) Possible future studies include extending it to multi-product environment, allowing mixed use of
different inventory policies, considering larger and more complicated net- works.