Integrated vendor–buyer cooperative inventory model with controllable lead time, ordering cost reduction, and service-level constraint

2012 ◽  
Vol 65 (5-8) ◽  
pp. 657-666 ◽  
Author(s):  
Sara Shahpouri ◽  
Parviz Fattahi ◽  
Ali Arkan ◽  
Kia Parsa
Keyword(s):  
Cost Reduction ◽  
Lead Time ◽  
Service Level ◽  
Inventory Model ◽  
Controllable Lead Time ◽  
Ordering Cost Reduction

Supply Chain Coordination Under Service Level Constraint and Controllable Lead Time

2016 ◽  
Vol 7 (2) ◽  
pp. 84-106 ◽  
Author(s):  
Prashant Jindal ◽  
Anjana Solanki
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Lead Time ◽  
Cost Allocation ◽  
Optimal Solution ◽  
Service Level ◽  
Decision Variable ◽  
Allocation Model ◽  
Controllable Lead Time ◽  
Ordering Cost Reduction

This paper investigates the coordination issue in a decentralized supply chain having a vendor and a buyer for a defective product. The authors develop two inventory models with controllable lead time under service level constraint. The first one is propose under decentralized mode based on the Stackelberg model, the other one is propose under centralized mode of the integrated supply chain. Ordering cost reduction is also including as a decision variable along with shipping quantity, lead time and number of shipments. Computational findings using the software Matlab 7.0 are provided to find the optimal solution. The results of numerical examples show that centralized mode is better than that of decentralized mode, and to induce both vendor and buyer for coordination, proposed cost allocation model is effective. The authors also numerically investigate the effects of backorder parameter on the optimal solutions. Benefit of ordering cost reduction in both models is also provided.

scholarly journals Effective Investment to Reduce Setup Cost in a Mixture Inventory Model Involving Controllable Backorder Rate and Variable Lead Time with a Service Level Constraint

2012 ◽  
Vol 2012 ◽  
pp. 1-15 ◽  
Author(s):  
Hsien-Jen Lin
Keyword(s):  
Cost Reduction ◽  
Lead Time ◽  
Service Level ◽  
Inventory Model ◽  
Optimal Order ◽  
Order Quantity ◽  
Setup Cost ◽  
System Parameters ◽  
Decision Variables ◽  
The Impact

This paper investigates the impact of setup cost reduction on an inventory policy for a continuous review mixture inventory model involving controllable backorder rate and variable lead time with a service level constraint, in which the order quantity, setup cost, and lead time are decision variables. Our objective is to develop an algorithm to determine the optimal order quantity, setup cost, and lead time simultaneously, so that the total expected annual cost incurred has a minimum value. Furthermore, four numerical examples are provided to illustrate the results, and the effects of system parameters are also included for decision making.

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