Multiple Deliveries of Two-Warehouse Deteriorating Production-Inventory Model

2013 ◽  
Vol 684 ◽  
pp. 634-638
Author(s):  
Hsiao Ching Chen ◽  
Yao Hung Hsieh
Keyword(s):  
Supply Chain ◽  
Optimization Technique ◽  
Optimal Solution ◽  
Inventory Model ◽  
Integrated System ◽  
Discounted Cash Flow ◽  
Supply Chain System ◽  
Partial Backordering ◽  
Production Inventory ◽  
Production Inventory System

In this study we develop a two-warehouse deteriorating production-inventory model from the perspectives of both the manufacturer and the retailer. The model considered multiple deliveries, partial backordering and inflation. The discounted cash flow (DSF) and optimization technique are also used to derive the optimal solution. A numerical example is given to validate the results of the whole production-inventory system. This study shows that multiple deliveries of the integrated system results in an optimal solution for the manufacturer-retailer supply chain system.

scholarly journals Integrated multistage supply chain inventory model of multiple retailers with imperfect production and inspection systems

2021 ◽  
Author(s):  
Chi-Jie Lu ◽  
Ming Gu ◽  
Tian-Shyug Lee ◽  
Chih-Te Yang
Keyword(s):  
Supply Chain ◽  
Optimal Solution ◽  
Solution Procedure ◽  
Inventory Model ◽  
Model Complexity ◽  
Supply Chain System ◽  
Imperfect Production ◽  
Proposed Model ◽  
Inspection Systems ◽  
Total Profit

Abstract An integrated multistage supply chain inventory model containing a single manufacturer and multiple retailers is proposed to consider deteriorating materials and finished products with imperfect production and inspection systems. The main purpose is to jointly determine the manufacturer’s production and delivery strategies and the retailers’ replenishment strategies to maximize the integrated total profit. First, the individual total profit functions of the manufacturer and multiple retailers are established and are integrated to form the total profit function of the supply chain system. Then, to address the model complexity, an algorithm is proposed to obtain the optimal solution. Several practical numerical examples are presented to demonstrate the solution procedure, and a sensitivity analysis is performed on the major parameters. From the numerical results, several findings that differ from those in the previous literature were observed. First, retailers with larger market scale, better cost control, and inspection capabilities guarantee higher integrated total profit. Second, increasing the deterioration rates of materials and finished products affect the order quantity of materials in various ways. Third, the manufacturer’s shipping strategy is rigid and not easily adjusted in the proposed model. The performance of the proposed model has several meaningful management implications.

Behavioral operations effect of fairness and unfairness concern in the decision of the supply chain production-inventory system

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaifang Fu ◽  
Zhixiang Chen ◽  
Bhaba R. Sarker
Keyword(s):  
Supply Chain ◽  
Inventory System ◽  
Inventory Problem ◽  
Supply Chain System ◽  
Content Type ◽  
Behavioral Operations ◽  
Production Inventory ◽  
Optimal Ordering ◽  
Ordering Quantity ◽  
Production Inventory System

Purpose The purpose of this paper is to investigate the behavioral operations effect in production inventory decision of supply chain consisting of one manufacturer and one buyer, and analyze how the unfairness concerns impact the decision of production inventory in a supply chain system. Design/methodology/approach First, a model without the buyer’s unfairness concern is established; then, advantage unfairness concern and disadvantage unfairness concern behavior of buyer are taken into account in the production inventory system. The authors analyze how advantage unfairness concern and disadvantage unfairness concern impact the optimal decisions and channel coordination. Findings The result shows several important conclusions. First, the buyer’s optimal ordering quantity and expected utility show opposing trend when the buyer has advantage unfairness concern. Second, the stronger bargaining power of the manufacturer results in an increasing buyer’s optimal ordering quantity under the advantage unfairness concern case, but decreasing under the disadvantage unfairness concern case. Third, the supply chain production-inventory can be coordinated under advantage unfairness concern case, but cannot be coordinated under disadvantage unfairness concern. Practical implications The study can provide to practitioners with important implications that when the vendor or the buyer in supply chain wants to make the decision of inventory replenishment, taking unfairness concerns into account will lead to different results. Therefore, to effectively improve the operations performance of supply chain, partners of the supply chain should not only care about their own interest, but also need to consider the fairness concern of the other partner, reflecting the cooperation consciousness of supply chain management. Originality/value This paper contributes to the new field of creative management–behavioral operations, offering managerial implications for the decision and optimization of supply chain production-inventory problem.

scholarly journals Sustainable Production–Inventory Model in Technical Cooperation on Investment to Reduce Carbon Emissions

Processes ◽  
2020 ◽  
Vol 8 (11) ◽  
pp. 1438 ◽  
Author(s):  
JiaLiang Pan ◽  
Chui-Yu Chiu ◽  
Kun-Shan Wu ◽  
Hsiu-Feng Yen ◽  
Yen-Wen Wang
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Inventory Model ◽  
Capital Investments ◽  
Cap And Trade ◽  
Green Technologies ◽  
Supply Chain System ◽  
Production Inventory ◽  
Total Profit

Carbon cap-and-trade and carbon offsets are common and important carbon emission reduction policies in many countries. In addition, carbon emissions from business activities can be effectively reduced through specific capital investments in green technologies. Nevertheless, such capital investments are costly and not all enterprises can afford these investments. Therefore, if all members of a supply chain agree to share the investments in the facilities, the supply chain can reduce carbon emissions and generate more profit. Under carbon cap-and-trade and carbon tax policies, this study proposes a production–inventory model in which the buyer and vendor in the integrated supply chain agree to co-invest funds to reduce carbon emissions. We planned to integrate production, delivery, replenishment, and technology to reduce carbon emissions so as to maximize the total profit of the supply chain system. Several examples are simulated and the sensitivity analysis of the main parameters is carried out. The optimal solutions and joint total profit under various carbon emission policies are also compared. The future carbon emission control trend is expected to enable companies to share risks by co-investing and developing sustainable supply chains.

An Imperfect Production Model for Breakable Multi-Item with Dynamic Demand and Learning Effect on Rework over Random Planning Horizon

2021 ◽  
Vol 14 (12) ◽  
pp. 574
Author(s):  
Amalesh Kumar Manna ◽  
Leopoldo Eduardo Cárdenas-Barrón ◽  
Barun Das ◽  
Ali Akbar Shaikh ◽  
Armando Céspedes-Mota ◽  
...  
Keyword(s):  
Learning Effect ◽  
Planning Horizon ◽  
Inventory Model ◽  
Inventory System ◽  
Production Model ◽  
Inventory Models ◽  
Imperfect Production ◽  
Production Inventory ◽  
Random Planning Horizon ◽  
Production Inventory System

In recent times, in the literature of inventory management there exists a notorious interest in production-inventory models focused on imperfect production processes with a deterministic time horizon. Nevertheless, it is well-known that there is a high influence and impact caused by the learning effect on the production-inventory models in the random planning horizon. This research work formulates a mathematical model for a re-workable multi-item production-inventory system, in which the demand of the items depends on the accessible stock and selling revenue. The production-inventory model allows shortages and these are partial backlogged over a random planning horizon. Also, the learning effect on the rework policy, inflation, and the time value of money are considered. The main aim is to determine the optimum production rates that minimize the expected total cost of the multi-item production-inventory system. A numerical example is solved and a detailed sensitivity analysis is conducted in order to study the production-inventory model.

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