Inter-dependent lead-time and ordering cost reduction strategy: a supply chain model with quality control, lead-time dependent backorder and price-sensitive stochastic demand

OPSEARCH ◽  
2021 ◽  
Author(s):  
Monami Das Roy ◽  
Shib Sankar Sana
Keyword(s):  
Quality Control ◽  
Supply Chain ◽  
Cost Reduction ◽  
Lead Time ◽  
Stochastic Demand ◽  
Time Dependent ◽  
Chain Model ◽  
Reduction Strategy ◽  
Supply Chain Model ◽  
Ordering Cost Reduction

scholarly journals Lead-time Dependent Ordering Cost Reduction and Trade-credit: A Supply Chain Model with Stochastic Demand and Rework

2020 ◽  
Vol 8 (5) ◽  
pp. 5113-5117
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Lead Time ◽  
Trade Credit ◽  
Chain Model ◽  
Lot Size ◽  
Expected Cost ◽  
Production Run ◽  
Supply Chain Model ◽  
Ordering Cost Reduction

This study focuses on an integrated vendor-buyer supply chain model where the lead-time and ordering cost reduction act dependently. The lead time demand of a product follows a normal distribution. The manufacturing process is imperfect. During production run time, a certain percentage of defective products are produced, which are immediately reworked. Trade-credit financing has been taken into consideration. The goal of this study is to minimize the joint total expected cost by providing an inter-dependent reduction strategy of lead-time and ordering cost along with the determination of the optimal values of lead-time, number of deliveries, order lot size, ordering cost, lead-time crashing cost, and the joint total expected cost. A solution algorithm and a numerical example are presented to illustrate and establish the integrated model. This model can be used in textiles, automobiles and computers industries.

A Coordinated Supply Chain Model for Imperfect Items under Power Function Lead Time Crashing Cost and Investment with a Service Level Constraint

2016 ◽  
Vol 9 (3) ◽  
pp. 65-82 ◽  
Author(s):  
Nughthoh Arfawi Kurdhi ◽  
Livvia Paradisea Santoso ◽  
Sri Sulistijowati Handajani ◽  
Titin Sri Martini
Keyword(s):  
Supply Chain ◽  
Power Function ◽  
Cost Reduction ◽  
Lead Time ◽  
Service Level ◽  
Chain Model ◽  
Imperfect Quality ◽  
Supply Chain Model ◽  
Ordering Cost Reduction ◽  
Crashing Cost

This paper presents a coordinated vendor-buyer supply chain model in two stages with imperfect quality items, lead time and ordering cost reduction, and service level constraint. It is assumed that each arrival lot received by the buyer contains a percentage of imperfect quality items which follows a uniform distribution. A 100% screening process for detecting the defective items is conducted. Lead time crashing cost and investment for ordering cost reduction follow power function distribution. The shortage during the lead time is permitted and backordered partially for the buyer. However, the level of shortage is limited by service level constraint policy. The optimal order quantity, reorder point, lead time, ordering cost, and the number of delivery are determined by the Lagrange method such that joint total cost of the system is minimized and the service level constraint is satisfied. An iterative procedure is developed to determine the optimal solution and a numerical example is presented to illustrate the result of the proposed model.

The effect of human errors on an integrated stochastic supply chain model with setup cost reduction and backorder price discount

2020 ◽  
Vol 226 ◽  
pp. 107643 ◽  
Author(s):  
Sunil Tiwari ◽  
Nima Kazemi ◽  
Nikunja Mohan Modak ◽  
Leopoldo Eduardo Cárdenas-Barrón ◽  
Sumon Sarkar
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Chain Model ◽  
Price Discount ◽  
Setup Cost ◽  
Human Errors ◽  
Supply Chain Model ◽  
Setup 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.

A novel approach to safety stock management in an integrated supply chain with controllable lead time and ordering cost reduction using present value

2020 ◽  
Vol 54 (5) ◽  
pp. 1327-1346 ◽  
Author(s):  
S. Tharani ◽  
R. Uthayakumar
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Lead Time ◽  
Cumulative Distribution ◽  
Stock Management ◽  
Present Value ◽  
Safety Stock ◽  
Novel Approach ◽  
Cost Reductions ◽  
Ordering Cost Reduction

This paper presents a novel approach to safety stock management and investigates the impact of lead time reduction within an integrated vendor–buyer supply chain framework using present value where lead time and ordering cost reductions act dependently. In particular, the cost of the safety stock is determined by adopting a logistic approximation to the standard normal cumulative distribution. The service level is formulated in relation to the dimension of the single shipment, to the average demand of the buyer and to the number of admissible stockouts. We first discuss the case where the lead time and ordering cost reductions with linear function, and then consider the logarithmic functional relationship. Numerical examples including the sensitivity analysis with some managerial insights of system parameters is provided to validate the results of the supply chain models. The main contribution of this paper is introducing various types of ordering cost reduction in Braglia et al. (Appl. Stoc. Mod. Bus. Ind. 32 (2016) 99–112) by handling a new approach.

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