A multi-retailer supply chain model with backorder and variable production cost

2018 ◽  
Vol 52 (3) ◽  
pp. 943-954 ◽  
Author(s):  
Arunava Majumder ◽  
Chandra K. Jaggi ◽  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Production Rate ◽  
Production Cost ◽  
Optimization Technique ◽  
Chain Model ◽  
Supply Chain Network ◽  
Supply Chain System ◽  
Supply Chain Model ◽  
Multiple Buyers ◽  
Variable Production

The modern marketing environment involves variability and randomness within the numerous parties of any supply chain network. Thus, formation of a supply chain model including multiple buyers and variable production rate is more acceptable than assuming a single-buyer with constant production rate model. This paper considers a supply chain network, where a single-vendor manufactures products in a batch production process and supplies them to a set of buyers over multiple times. Instead of assuming a fixed production rate, as commonly used in the literature, a variable production rate is introduced by the vendor and the production cost of the vendor is treated as a function of production rate. The continuous review inventory model is applied for multiple buyers to inspect inventory levels and a crashing cost is incurred by all buyers to reduce their lead times. The lead time demand follows a normal distribution. The unsatisfied demands at the buyers end are partially backordered. A model is formulated to minimize the joint expected cost of the vendor-buyers supply chain system. A classical optimization technique is utilized to solve the model. An improved algorithm is developed to obtain the numerical solution of the model. Finally, numerical examples are given to illustrate the model.

Two-echelon imperfect production fuzzy supply chain model for reliability dependent demand with probabilistic deterioration and rework

2021 ◽  
pp. 1-15
Author(s):  
Sudip Adak ◽  
G.S. Mahapatra
Keyword(s):  
Supply Chain ◽  
Production Rate ◽  
Production Cost ◽  
Idle Time ◽  
Chain Model ◽  
Specific Time ◽  
Defective Items ◽  
Imperfect Production ◽  
Supply Chain Model ◽  
Dependent Demand

This paper develops a fuzzy two-layer supply chain for manufacturer and retailer with defective and non-defective types of products. The manufacturer produces up to a specific time, including faulty and non-defective items, and after the screening, the non-defective item sends to the retailer. The retailer’s strategy is to do the screening of items received from the manufacturer; subsequently, the perfect quality items are used to fulfill the customer’s demand, and the defective items are reworked. The retailer considers that customer demand is time and reliability dependent. The supply chain considers probabilistic deterioration for the manufacturer and retailers along with the strategies such as production rate, unit production cost, cost of idle time of manufacturer, screening, rework, etc. The optimum average profit of the integrated model is evaluated for both the cases crisp and fuzzy environments. Managerial insights and the effect of changes in the parameters’ values on the optimal inventory policy under fuzziness are presented.

scholarly journals Effects of Variable Production Rate and Time-Dependent Holding Cost for Complementary Products in Supply Chain Model

2017 ◽  
Vol 2017 ◽  
pp. 1-13 ◽  
Author(s):  
Mitali Sarkar ◽  
Sun Hur ◽  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Production Rate ◽  
Graphical Representation ◽  
Stackelberg Game ◽  
Time Dependent ◽  
Chain Model ◽  
Complementary Products ◽  
Supply Chain Model ◽  
Holding Cost ◽  
Variable Production

Recently, a major trend is going to redesign a production system by controlling or making variable the production rate within some fixed interval to maintain the optimal level. This strategy is more effective when the holding cost is time-dependent as it is interrelated with holding duration of products and rate of production. An effort is made to make a supply chain model (SCM) to show the joint effect of variable production rate and time-varying holding cost for specific type of complementary products, where those products are made by two different manufacturers and a common retailer makes them bundle and sells bundles to end customers. Demand of each product is specified by stochastic reservation prices with a known potential market size. Those players of the SCM are considered with unequal power. Stackelberg game approach is employed to obtain global optimum solution of the model. An illustrative numerical example, graphical representation, and managerial insights are given to illustrate the model. Results prove that variable production rate and time-dependent holding cost save more than existing literature.

scholarly journals Integrated Supply Chain Contract Model With Drop-Shipper Players

2018 ◽  
Vol 19 (1) ◽  
pp. 58
Author(s):  
Faisal Ibrahim
Keyword(s):  
Supply Chain ◽  
Chain Model ◽  
Actual System ◽  
Supply Chain System ◽  
Supply Chain Contract ◽  
Total Cost ◽  
Chain System ◽  
Coordination Model ◽  
Supply Chain Model ◽  
Integrated Supply Chain

In this paper, we developed model integrated supply chain model with drop-shipper players.  The aim of the study is to integrate players in the supply chain system that one of its players is a drop shipper. This coordination model considers the policy of late payment and prosecution for delivery of goods. Previous, The author has described the supply chain system in detail. The experiments were conducted into different case scenarios, where each scenario would represent the actual system that occurred. Then also conducted sensitivity analysis on some predicted variables significantly influence the total cost of the supply chain. From the results obtained, it can be concluded that coordination with consideration of delay in payment and penalty contract for drop ship has successfully integrated the players in the supply chain system under study. This can be proved by the lower total cost of the supply chain when it is integrated with that consideration.

Establishing relation between production rate and product quality in a single-vendor multi-buyer supply chain model

2021 ◽  
Vol 11 (2/3) ◽  
pp. 1
Author(s):  
Kristina Rangsha Marak ◽  
Richa Nandra ◽  
Bikash Koli Dey ◽  
ARUNAVA MAJUMDER ◽  
Ramandeep Kaur
Keyword(s):  
Supply Chain ◽  
Product Quality ◽  
Production Rate ◽  
Chain Model ◽  
Single Vendor ◽  
Supply Chain Model

scholarly journals Study of the Bullwhip Effect in a Multistage Supply Chain with Callback Structure considering Two Retailers

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-12 ◽  
Author(s):  
Junhai Ma ◽  
Liqing Zhu ◽  
Ye Yuan ◽  
Shunqi Hou
Keyword(s):  
Supply Chain ◽  
Moving Average ◽  
Bullwhip Effect ◽  
Lead Times ◽  
Chain Model ◽  
Supply Chain System ◽  
Forecasting Method ◽  
Supply Chain Model ◽  
The Impact ◽  
Demand Processes

With the purpose of researching the bullwhip effect when there is a callback center in the supply chain system, this paper establishes a new supply chain model with callback structure, which has a material supplier, a manufacture, and two retailers. The manufacture and retailers all employ AR(1) demand processes and use order-up-to inventory policy when they make order decisions. Moving average forecasting method is used to measure the bullwhip effect of each retailer and manufacture. We investigate the impact of lead-times of retailers and manufacture, forecasting precision, callback index, and marketing share on the bullwhip effect of both retailers and manufacture. Then we use the method of numerical simulation to indicate the different parameters in this supply chain. Furthermore, this paper puts forward some suggestions to help the enterprises to control the bullwhip effect in the supply chain with callback structure.

scholarly journals Integrated Supply Chain Contract Model With Drop-Shipper Players

2018 ◽  
Vol 19 (1) ◽  
pp. 58
Author(s):  
Faisal Ibrahim
Keyword(s):  
Supply Chain ◽  
Chain Model ◽  
Actual System ◽  
Supply Chain System ◽  
Supply Chain Contract ◽  
Total Cost ◽  
Chain System ◽  
Coordination Model ◽  
Supply Chain Model ◽  
Integrated Supply Chain

In this paper, we developed model integrated supply chain model with drop-shipper players.  The aim of the study is to integrate players in the supply chain system that one of its players is a drop shipper. This coordination model considers the policy of late payment and prosecution for delivery of goods. Previous, The author has described the supply chain system in detail. The experiments were conducted into different case scenarios, where each scenario would represent the actual system that occurred. Then also conducted sensitivity analysis on some predicted variables significantly influence the total cost of the supply chain. From the results obtained, it can be concluded that coordination with consideration of delay in payment and penalty contract for drop ship has successfully integrated the players in the supply chain system under study. This can be proved by the lower total cost of the supply chain when it is integrated with that consideration.

scholarly journals Decoupling paradigm of push-pull theory of oscillation in the FMCG industry

2016 ◽  
Vol 47 (2) ◽  
pp. 53-66 ◽  
Author(s):  
T.P. Mbhele
Keyword(s):  
Supply Chain ◽  
Bullwhip Effect ◽  
Modern Technology ◽  
Supply Chain Performance ◽  
Chain Model ◽  
Supply Chain Network ◽  
Innovative Strategies ◽  
Supply Chain Model ◽  
Demand Information ◽  
Order Variability

The amplification of demand order variability germinates from distorted demand information upstream while sometimes reacting to demand-driven inventory positioning influenced by the custodians of downstream information. This studyuses factor analysis to tentatively develop a supply chain model to enhance the competence of supply chain performance in terms of responsiveness, connectivity and agility. The results of the analysis indicate that the magnitude of control on the bullwhip effect and access to economic information on demand orders in the supply chain network are associated with the modelling of the push-pull theory of oscillation on three mirror dimensions of supply chain interrelationships (inventory positioning, information sharing and electronically-enabled supply chain systems). The findings provide the perspective on managing amplification in consumer demand order variability upstream in the supply chain network while enhancing the overall efficiency of supply chain performance. This article provides insight into the use of innovative strategies and modern technology to enhance supply chain visibility through integrated systems networks.

scholarly journals Integrated Green Supply Chain Model to Reduce Carbon Emission with Permissible Delay-in-Payment Consideration

2019 ◽  
Vol 20 (2) ◽  
pp. 24
Author(s):  
Muhammad Faisal Ibrahim ◽  
Maulin Masyito Putri
Keyword(s):  
Supply Chain ◽  
Positive Impact ◽  
Corporate Sustainability ◽  
Green Supply Chain ◽  
Chain Model ◽  
Supply Chain System ◽  
Chain System ◽  
Supply Chain Model ◽  
Permissible Delay In Payment ◽  
Reduce Carbon Emission

In practice, the policy of delaying payment periods is prevalent between players in a supply chain system. Generally, payments made at the end of the permitted period. Supply chain management is one of the keys to corporate sustainability that the activities have an impact on the environment.  This paper aims to develop an integrated green supply chain model with a permissible delay in payment consideration. In this research, the author develops a mathematical model to find the effect of delay in payment on emissions costs without ignoring the economic performance of a supply chain. The author develops four different scenarios model. Furthermore, numerical experiments and sensitivity analysis tests were conducted. Result of the study shows that delay in payment is integrated players into the supply chain system.  It has a positive impact on reducing supply chain emissions costs.

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