Using Simple and Efficient Algorithm Involving Ordering Cost Reduction and Backorder Price Discount on Inventory System under Variable Lead Time

2010 ◽  
Vol 9 (4) ◽  
pp. 804-810 ◽  
Author(s):  
Shien-Ping Huang
Keyword(s):  
Efficient Algorithm ◽  
Cost Reduction ◽  
Lead Time ◽  
Inventory System ◽  
Price Discount ◽  
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.

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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