Manufacturing setup cost reduction and quality improvement for the distribution free continuous-review inventory model with a service level constraint

2015 ◽  
Vol 34 ◽  
pp. 74-82 ◽  
Author(s):  
Biswajit Sarkar ◽  
Kripasindhu Chaudhuri ◽  
Ilkyeong Moon
Keyword(s):  
Quality Improvement ◽  
Cost Reduction ◽  
Service Level ◽  
Inventory Model ◽  
Setup Cost ◽  
Distribution Free ◽  
Continuous Review ◽  
Setup Cost Reduction

scholarly journals Effect of Electrical Energy on the Manufacturing Setup Cost Reduction, Transportation Discounts, and Process Quality Improvement in a Two-Echelon Supply Chain Management under a Service-Level Constraint

Energies ◽  
2019 ◽  
Vol 12 (19) ◽  
pp. 3733 ◽  
Author(s):  
Irfanullah Khan ◽  
Jihed Jemai ◽  
Han Lim ◽  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Quality Improvement ◽  
Energy Consumption ◽  
Cost Reduction ◽  
Electrical Energy ◽  
Service Level ◽  
Chain Model ◽  
Electrical Energy Consumption ◽  
Setup Cost ◽  
Setup Cost Reduction

The need for efficient electrical energy consumption has greatly expanded in the process industries. In this paper, efforts are made to recognize the electrical energy consumption in a two-echelon supply chain model with a stochastic lead-time demand and imperfect production, while considering the distribution free approach. The initial investments are made for quality improvement and setup cost reduction, which ultimately reduce electrical energy consumption. The inspection costs are considered in order to ensure the good qualities of the product. Centralized and decentralized strategies are used to analyze the proposed supply chain model. The main objective of this study is to reduce the overall cost through efficient electrical energy consumption in supply chain management by optimizing the lot size, the number of shipments, the setup cost, and the failure rate. A quantity-based transportation discount policy is applied to reduce the expected annual costs, and a service-level constraint is incorporated for the buyer to avoid a stockout situation. The impact of the decision variables on the expected total costs is analyzed, and sensitivity analysis is carried out. The results show a significant reduction in overall cost, with quality improvement and setup cost reduction ultimately reducing electrical energy consumption.

A neoteric approach to geometric shipment policy in an integrated supply chain with setup cost reduction and freight cost using service level constraint

2020 ◽  
Vol 54 (3) ◽  
pp. 653-673
Author(s):  
Selvaraj Hemapriya ◽  
Ramasamy Uthayakumar
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Transportation Cost ◽  
Service Level ◽  
Setup Cost ◽  
Transportation Modes ◽  
Controllable Lead Time ◽  
Integrated Supply Chain ◽  
The Impact ◽  
Setup Cost Reduction

This paper explores a neoteric approach to geometric shipment policy and concerns the impact of controllable lead time, setup cost reduction, lost sales caused by stock-out and freight cost within an integrated vendor–buyer supply chain configuration using service-level constraint. In particular, the transportation cost is a function of shipping weight, distance and transportation modes. In other words, truckload (TL) and less-than-truckload (LTL) shipments. A heuristic model is developed to minimize the joint expected total cost (JETC), when the mode of transportation is limited to TL and LTL shipments. Numerical examples including the sensitivity analysis with some managerial insights of system parameters is implemented to endorse the outcome of the supply chain models.

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