Production and shipment lot sizing in a vendor–buyer supply chain with transportation cost

2007 ◽  
Vol 176 (3) ◽  
pp. 1592-1606 ◽  
Author(s):  
K. Ertogral ◽  
M. Darwish ◽  
M. Ben-Daya
Keyword(s):  
Supply Chain ◽  
Lot Sizing ◽  
Transportation Cost

scholarly journals Integrated Production-Delivery Lot Sizing Model with Limited Production Capacity and Transportation Cost considering Overtime Work and Maintenance Time

2018 ◽  
Vol 2018 ◽  
pp. 1-10 ◽  
Author(s):  
Renqian Zhang ◽  
Xuefang Sun
Keyword(s):  
Supply Chain ◽  
Numerical Experiment ◽  
Lot Sizing ◽  
Production Capacity ◽  
Transportation Cost ◽  
Solution Procedure ◽  
Sensitive Analysis ◽  
Integrated Production ◽  
Overtime Work ◽  
Maintenance Time

An extension of the integrated production-delivery lot sizing model with limited production capacity and transportation cost is investigated. We introduce the factor of overtime work into the model to improve the manufacturer’s production. In addition, when finishing a lot, the manufacturer has maintenance time to maintain and repair equipment for ensuring that the supply chain is operating continuously. By analyzing the integrated model, the solution procedure is provided to determine the optimal delivery and order policy. We conduct a numerical experiment and give sensitive analysis by varying some parameters to illustrate the problem and its solution procedure.

System dynamics model of production-inventory-routing system in the green supply chain

2021 ◽  
pp. 1-14
Author(s):  
Katayoun Naderi ◽  
Roya M. Ahari ◽  
Javid Jouzdani ◽  
Atefeh Amindoust
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Supply Chains ◽  
Transportation Cost ◽  
Green Supply Chain ◽  
Ideal Condition ◽  
Inventory Routing ◽  
Production Inventory ◽  
Fierce Competition ◽  
Maximum Production Rate

Fierce competition in the global markets forced companies to improve the design and management of supply chains, because companies are always looking for more profit and higher customer satisfaction. The emergence of the green supply chain is one of the most important developments of the last decade. It provides an opportunity for companies to adjust their supply chains according to environmental goals and sustainability. The integrated production-inventory-routing is a new field that aims to optimize these three decision-making levels. It can be described as follow: a factory produces one or more products, and sells them to several customers (by direct delivery or a specific customer chain). The current study aims to model a production-inventory-routing system using a system dynamics approach to design a green supply chain under uncertain conditions. For this purpose, first, the association between selected variables was determined. Then, the proposed model was validated. Finally, to identify variables with the highest influence, four scenarios were developed. The results indicated that minimum total transportation cost, the total warehouse capacity of the supply chain, and the maximum production rate are the most influential strategies to achieve ideal condition.

Coordinating lot sizing and integrated production and distribution scheduling with batch delivery and holding cost

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maedeh Bank ◽  
Mohammad Mahdavi Mazdeh ◽  
Mahdi Heydari ◽  
Ebrahim Teimoury
Keyword(s):  
Supply Chain ◽  
Lot Sizing ◽  
Mixed Integer ◽  
Time Interval ◽  
Content Type ◽  
Integrated Production ◽  
Holding Costs ◽  
Integrated Production And Distribution ◽  
Distribution Scheduling ◽  
Production And Distribution

PurposeThe aim of this paper is to present a method for finding the optimum balance between sequence-dependent setup costs, holding costs, delivery costs and delay penalties in an integrated production–distribution system with lot sizing decisions.Design/methodology/approachTwo mixed integer linear programming models and an optimality property are proposed for the problem. Since the problem is NP-hard, a genetic algorithm reinforced with a heuristic is developed for solving the model in large-scale settings. The algorithm parameters are tuned using the Taguchi method.FindingsThe results obtained on randomly generated instances reveal a performance advantage for the proposed algorithm; it is shown that lot sizing can reduce the average cost of the supply chain up to 11.8%. Furthermore, the effects of different parameters and factors of the proposed model on supply chain costs are examined through a sensitivity analysis.Originality/valueAlthough integrated production and distribution scheduling in make-to-order industries has received a great deal of attention from researchers, most researchers in this area have treated each order as a job processed in an uninterrupted time interval, and no temporary holding costs are assumed. Even among the few studies where temporary holding costs are taken into consideration, none has examined the effect of splitting an order at the production stage (lot sizing) and the possibility of reducing costs through splitting. The present study is the first to take holding costs into consideration while incorporating lot sizing decisions in the operational production and distribution problem.

scholarly journals Willingness to Pay for Halal Transportation Cost: The Moderating Effect of Knowledge on the Theory of Planned Behavior

2019 ◽  
Vol 8 (6S3) ◽  
pp. 479-488 ◽  
Keyword(s):  
Supply Chain ◽  
Theory Of Planned Behavior ◽  
Willingness To Pay ◽  
Planned Behavior ◽  
Behavioral Control ◽  
Transportation Cost ◽  
Subjective Norm ◽  
Moderating Effect ◽  
Perceived Behavioral Control ◽  
The Relationship

Halal transportation services is one of the crucial components of producing Halal products. Since Halal is unique and involves elaborate regulations and executions, therefore it requires huge investment. Like any other supply chain, the transportation cost will be transferred to the end users, normally the customers, thus increasing the price of final products. It is notably common to find studies done on Muslim customers and their preference on Halal products, however, studies on Muslims preferences towards Halal transportation could still be considered as novel. By adopting the Theory of Planned Behavior and religiosity; and by taking into account the moderating effect of knowledge, this study aims to identify the factors that lead to the customers’ willingness to pay for the Halal transportation cost. Using a purposive sampling method, the data was collected among Muslim consumers in a prominent shopping complex in Malaysia and was analyzed using Smart Partial Least Squares (PLS). Based on the finding, it is shown that the attitude and perceived behavioral control gave a positive relationship with the willingness to pay for Halal transportation. Meanwhile, subjective norm and religiosity were on the opposite as there were both hold an insignificant effect towards the willingness to pay for the Halal transportation. Knowledge has moderated the relationship between attitude and willingness to pay for Halal transportation, but not for the relationship between subjective norm and perceived behavioral control. It is expected that this study could provide a better understanding of Muslim consumers’ behavior on purchasing for Halal transportation, as well as other Halal supply chain activities.

A novel optimisation model in the collaborative supply chain with production time capacity consideration

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Ridwan Andi Purnomo ◽  
Adhe Rizky Anugerah ◽  
Salvia Fatma Aulia ◽  
Abdullah ‘Azzam
Keyword(s):  
Supply Chain ◽  
Low Cost ◽  
Transportation Cost ◽  
Production Costs ◽  
Furniture Industry ◽  
Production Time ◽  
Content Type ◽  
Total Cost ◽  
Penalty Cost ◽  
Optimisation Model

Purpose This study aims to propose an optimal procurement model of the collaborative supply chain in the furniture industry. The final output is the total cost minimisation to produce a furniture product that covers material cost, processing cost, transportation cost and holding cost. Therefore, if companies can give the best value to customers at a low cost, then competitive advantages can be achieved. Design/methodology/approach A genetic algorithm (GA) as a metaheuristic approach was used to solve problems in this research. The optimisation was initiated by developing a mathematical model to formulate the objective function. Findings Based on the case study, the proposed GA model was able to reduce the total cost of production. The cost was reduced by 73.09% compared to the existing system. Besides, the production time of the proposed model is within the capacity of both companies; hence, no penalty cost is imposed. Practical implications The proposed GA model has been implemented and tested to minimise production costs in the Indonesian furniture industry. Originality/value To the best of author knowledge, there is no research has proposed an optimisation model that incorporates production cost, transportation cost and production time capacity together in the collaborative supply chain. This research is the first to collaborate these factors using GA in the furniture industry.

Lot Sizing and Dynamic Pricing with Random Yield and Different Qualities

2012 ◽  
Vol 4 (3) ◽  
pp. 91-101
Author(s):  
Guo Li ◽  
Tao Gao ◽  
Zhaohua Wang ◽  
Shihua Ma
Keyword(s):  
Supply Chain ◽  
Dynamic Pricing ◽  
Lot Sizing ◽  
Random Component ◽  
Random Yield ◽  
Type B ◽  
Numerical Illustration ◽  
Optimal Production ◽  
Pricing Errors ◽  
Centralized System

The literature under random component yield has focused on coordination of supply chain at the determined price, where decision maker chooses its optimal production quantities. The authors consider a centralized system when the price is not determined under both random yield and demand. Type A with perfect quality and type B with imperfect quality are produced due to the random yield. They prove the unique concavity of expected profit in centralized system at determined price. Then dynamic pricing is considered and algorithm is put forward for dynamic pricing. Errors can be sufficiently small as long as some parameters can be set suitably. Apart from lot sizing and dynamic pricing, the authors also provide qualitative insights based on numerical illustration of centralized and decentralized solutions.

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