STRATEGIES OF DELAY DELIVERY AND CONTROLLABLE LEAD TIME TO OPTIMIZE THE TOTAL COST IN SUPPLY CHAIN CONSIGNMENT INVENTORY

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.

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Supply Chain Coordination Under Service Level Constraint and Controllable Lead Time

International Journal of Operations Research and Information Systems ◽

10.4018/ijoris.2016040105 ◽

2016 ◽

Vol 7 (2) ◽

pp. 84-106 ◽

Cited By ~ 1

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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Comparison of particular logistic models’ adoption in the Czech Republic

Open Engineering ◽

10.1515/eng-2016-0092 ◽

2016 ◽

Vol 6 (1) ◽

Author(s):

Petra Vrbová ◽

Václav Cempírek

Keyword(s):

Supply Chain ◽

Czech Republic ◽

Lead Time ◽

Logistic Model ◽

Logistic Models ◽

Service Level ◽

Time Service ◽

The Czech Republic ◽

Total Cost ◽

Challenging Tasks

Abstract Managing inventory is considered as one of the most challenging tasks facing supply chain managers and specialists. Decisions related to inventory locations along with level of inventory kept throughout the supply chain have a fundamental impact on the response time, service level, delivery lead-time and the total cost of the supply chain. The main objective of this paper is to identify and analyse the share of a particular logistic model adopted in the Czech Republic (Consignment stock, Buffer stock, Safety stock) and also compare their usage and adoption according to different industries. This paper also aims to specify possible reasons of particular logistic model preferences in comparison to the others. The analysis is based on quantitative survey held in the Czech Republic.

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