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.

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.

scholarly journals A Two-Echelon Supply Chain Management With Setup Time and Cost Reduction, Quality Improvement and Variable Production Rate

Mathematics ◽  
2019 ◽  
Vol 7 (4) ◽  
pp. 328 ◽  
Author(s):  
Bikash Dey ◽  
Biswajit Sarkar ◽  
Sarla Pareek
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Production Rate ◽  
Cost Reduction ◽  
Lead Time ◽  
Setup Cost ◽  
Chain Management ◽  
The Impact ◽  
Variable Production ◽  
Setup Cost Reduction

This model investigates the variable production cost for a production house; under a two-echelon supply chain management where a single vendor and multi-retailers are involved. This production system goes through a long run system and generates an out-of-control state due to different issues and produces defective items. This model considers the reduction of the defective rate and setup cost through investment. A discrete investment for setup cost reduction and a continuous investment is considered to reduce the defective rate and to increase the quality of products. Setup and processing time are dependent on lead time in this model. The model is solved analytically to find the optimal values of the production rate, safety factors, optimum quantity, lead time length, investment for setup cost reduction, and the probability of the production process going out-of-control. An efficient algorithm is constructed to find the optimal solution numerically and sensitivity analysis is given to show the impact of different parameters. A case study and different cases are also given to validate the 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.

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