A Sustainable Inventory Model for Setup and Ordering Cost Reduction under a Controllable Lead Time

2021 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Malleeswaran Balasubramani ◽  
R. Uthayakumar
Keyword(s):  
Cost Reduction ◽  
Lead Time ◽  
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.

Integrated vendor–buyer cooperative inventory models with controllable lead time and ordering cost reduction

2006 ◽  
Vol 170 (2) ◽  
pp. 481-495 ◽  
Author(s):  
Hung-Chi Chang ◽  
Liang-Yuh Ouyang ◽  
Kun-Shan Wu ◽  
Chia-Huei Ho
Keyword(s):  
Cost Reduction ◽  
Lead Time ◽  
Inventory Models ◽  
Controllable Lead Time ◽  
Ordering Cost Reduction

scholarly journals Three-Echelon Inventory Model with Permissible Delay in Payments under Controllable Lead Time and Backorder Consideration

2014 ◽  
Vol 2014 ◽  
pp. 1-16 ◽  
Author(s):  
M. F. Yang ◽  
Wei-Chung Tseng
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Critical Issue ◽  
Solution Procedure ◽  
Inventory Model ◽  
Permissible Delay In Payments ◽  
Inventory Policy ◽  
Controllable Lead Time ◽  
Key Factor ◽  
Delay In Payments

This paper proposes a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration to find out the suitable inventory policy to enhance profit of the supply chain. In today’s highly competitive market, the supply chain management has become a critical issue in both practice and academic and supply chain members have to cooperate with each other to bring more benefits. In addition, the inventory policy is a key factor to influence the performance of the supply chain. Therefore, in this paper, we develop a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration. Furthermore, the purpose of this paper is to maximize the joint expect total profit on inventory model and attempt to discuss the inventory policy under different conditions. Finally, with a numerical example provided here to illustrate the solution procedure, we may discover that decision-makers can control lead time and payment time to enhance the performance of the supply chain.

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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