Table 2: Definitions of parameters and variables.

Parameters and variables of suppliers

VCON: demand rate of suppliers AVCON: demand factor of suppliers after smoothing
VINV: inventory level of suppliers TINV: system target inventory level
WIP: work-in-process inventory level TWIP: target work-in-process inventory level
EINV: inventory deviation EWIP: deviation of work-in-process inventory
ORT: productivity of suppliers CRT: production fulfillment rate of suppliers
: adjustment time of system inventory deviation : demand rate of suppliers smooth time
: work-in-process inventory deviation adjustment time : production delay time of suppliers
AEWIP: work-in-process inventory deviation regulation factor
AEINV: deviation adjustment rate of system inventory

Parameters and variables of retailers

CON: demand rate of retailers ACON: demand rate of retailers after forecasting
RINP: inventory level of retailers (including inventory on the way)SS: safety inventory level
G: safety inventory factor of retailers ROP: reorder-point of distributors
SRT: delivering rate to retailers
DSS: reorder-point of retailers variation
GIT: inventory of distributors on the way
RINV: actual inventory level of retailers
L: transportation time from suppliers to retailers
ETQ: economic order quantity