Study on Supply Chain Model with Stochastic Demand, Rework, Trade-credit, Variable Transportation Cost and Lead-time Dependent Ordering Cost Reduction

2021 ◽  
pp. 132-140
Author(s):  
Monami Das Roy
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Lead Time ◽  
Trade Credit ◽  
Stochastic Demand ◽  
Transportation Cost ◽  
Time Dependent ◽  
Chain Model ◽  
Supply Chain Model ◽  
Ordering Cost Reduction

scholarly journals Lead-time Dependent Ordering Cost Reduction and Trade-credit: A Supply Chain Model with Stochastic Demand and Rework

2020 ◽  
Vol 8 (5) ◽  
pp. 5113-5117
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Lead Time ◽  
Trade Credit ◽  
Chain Model ◽  
Lot Size ◽  
Expected Cost ◽  
Production Run ◽  
Supply Chain Model ◽  
Ordering Cost Reduction

This study focuses on an integrated vendor-buyer supply chain model where the lead-time and ordering cost reduction act dependently. The lead time demand of a product follows a normal distribution. The manufacturing process is imperfect. During production run time, a certain percentage of defective products are produced, which are immediately reworked. Trade-credit financing has been taken into consideration. The goal of this study is to minimize the joint total expected cost by providing an inter-dependent reduction strategy of lead-time and ordering cost along with the determination of the optimal values of lead-time, number of deliveries, order lot size, ordering cost, lead-time crashing cost, and the joint total expected cost. A solution algorithm and a numerical example are presented to illustrate and establish the integrated model. This model can be used in textiles, automobiles and computers industries.

A Coordinated Supply Chain Model for Imperfect Items under Power Function Lead Time Crashing Cost and Investment with a Service Level Constraint

2016 ◽  
Vol 9 (3) ◽  
pp. 65-82 ◽  
Author(s):  
Nughthoh Arfawi Kurdhi ◽  
Livvia Paradisea Santoso ◽  
Sri Sulistijowati Handajani ◽  
Titin Sri Martini
Keyword(s):  
Supply Chain ◽  
Power Function ◽  
Cost Reduction ◽  
Lead Time ◽  
Service Level ◽  
Chain Model ◽  
Imperfect Quality ◽  
Supply Chain Model ◽  
Ordering Cost Reduction ◽  
Crashing Cost

This paper presents a coordinated vendor-buyer supply chain model in two stages with imperfect quality items, lead time and ordering cost reduction, and service level constraint. It is assumed that each arrival lot received by the buyer contains a percentage of imperfect quality items which follows a uniform distribution. A 100% screening process for detecting the defective items is conducted. Lead time crashing cost and investment for ordering cost reduction follow power function distribution. The shortage during the lead time is permitted and backordered partially for the buyer. However, the level of shortage is limited by service level constraint policy. The optimal order quantity, reorder point, lead time, ordering cost, and the number of delivery are determined by the Lagrange method such that joint total cost of the system is minimized and the service level constraint is satisfied. An iterative procedure is developed to determine the optimal solution and a numerical example is presented to illustrate the result of the proposed model.

scholarly journals Optimal ordering policy in a two-echelon supply chain model with variable backorder and demand uncertainty

2020 ◽  
Author(s):  
Sumon Sarkar ◽  
B. C. Giri
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Demand Uncertainty ◽  
Trade Credit ◽  
Chain Model ◽  
Order Quantity ◽  
Optimal Decisions ◽  
Solution Algorithms ◽  
Supply Chain Model ◽  
Credit Financing

The paper investigates a two-echelon production-delivery supply chain model for products with stochastic demand and backorder-lost sales mixture under trade-credit financing. The manufacturer delivers the retailer's order quantity in a number of equal-sized shipments. The replenishment lead-time is such that it can be crashed to a minimum duration at an additional cost that can be treated as an investment. Shortages in the retailer's inventory are allowed to occur and are partially backlogged with a backlogging rate dependent on customer's waiting time. Moreover, the manufacturer offers the retailer a credit period which is less than the reorder interval. The model is formulated to find the optimal solutions for order quantity, safety factor, lead time, and the number of shipments from the manufacturer to the retailer in light of both distribution-free and known distribution functions. Two solution algorithms are provided to obtain the optimal decisions for the integrated system. The effects of controllable lead time, backorder rate and trade-credit financing on optimal decisions are illustrated through numerical examples.

scholarly journals Supply Chain Model with Stochastic Lead Time, Trade-Credit Financing, and Transportation Discounts

2017 ◽  
Vol 2017 ◽  
pp. 1-14 ◽  
Author(s):  
Sung Jun Kim ◽  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Trade Credit ◽  
Coordination Mechanism ◽  
Chain Model ◽  
Credit Policy ◽  
Setup Cost ◽  
Credit Period ◽  
Supply Chain Model ◽  
Credit Financing

This model extends a two-echelon supply chain model by considering the trade-credit policy, transportations discount to make a coordination mechanism between transportation discounts, trade-credit financing, number of shipments, quality improvement of products, and reduced setup cost in such a way that the total cost of the whole system can be reduced, where the supplier offers trade-credit-period to the buyer. For buyer, the backorder rate is considered as variable. There are two investments to reduce setup cost and to improve quality of products. The model assumes lead time-dependent backorder rate, where the lead time is stochastic in nature. By using the trade-credit policy, the model gives how the credit-period would be determined to achieve the win-win outcome. An iterative algorithm is designed to obtain the global optimum results. Numerical example and sensitivity analysis are given to illustrate 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
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