The construction and analysis of the 3C manufacturer-led distributor optimization consignment model using global search particle swarm optimization

In Computer, Communications and Consumer-Electronics (3C) industries, manufacturers must provide the exact predicted demand or number of contracts with brand manufacturers so that distributors can prepare the correct inventory. Moreover, manufacturers are obligated to provide weekly or monthly production capacity and components consumption to distributors in order to facilitate distributor deliveries for timely stocking to maintain the right amount of inventory within Hub warehouses. Thus, the establishment of a consignment cooperation model is very important. This study considered the estimated proportion of profits assigned to distributors under the leadership of the manufacturers and established and analyzed the mathematical model of the final product unit sales prices, as well as the final product unit production cost using global search particle swarm optimization (PSO). According to the analysis results, the proportion of profits assigned to distributors is not necessarily higher when the product unit sales volume is higher; for distributors, more components in stock naturally raise the cost. The consignment cooperation model helps increase the profits of the manufacturer. It is expected that the establishment and analysis of the model proposed herein can provide manufacturers in the 3C industries with decision-making suggestions.