Algebraic modelling of a two level supply chain with defective items

2018 ◽  
Vol 52 (2) ◽  
pp. 415-427 ◽  
Author(s):  
Mohamed E. Seliaman ◽  
Mehmood Khan ◽  
Leopoldo Eduardo Cárdenas-Barrón
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Cycle Time ◽  
Differential Calculus ◽  
Coordination Mechanisms ◽  
Algebraic Solution ◽  
Two Stage ◽  
Defective Items ◽  
Imperfect Items ◽  
Algebraic Modelling

M. Khan and M.Y. Jaber, Optimal inventory cycle in a two-stage supply chain incorporating imperfect items from suppliers. Int. J. Oper. Res. 10 (2011) 442–457, have addressed a two level supply chain of defective items. They compared three coordination mechanisms, i.e. cycle time; K–multiplier cycle time; and 2K–multiplier cycle time. This paper proposes a simpler algebraic solution for the K–multiplier cycle time mechanism without the use of differential calculus. The two level supply chain with defective items is illustrated with a numerical example. A sensitivity analysis is also provided.

scholarly journals Simulation software as a tool for supply chain analysis and improvement

2016 ◽  
Vol 13 (3) ◽  
pp. 983-998 ◽  
Author(s):  
Ramírez Sánchez ◽  
Mota Dulce ◽  
Giner Hernández ◽  
Luis Alcaraz ◽  
Tlapa Mendoza
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Cycle Time ◽  
Simulation Software ◽  
Base Line ◽  
Delivery Time ◽  
Time Production ◽  
Automotive Supply Chain ◽  
Adjustment Time ◽  
Automotive Supply

Effective decision making in the automotive supply chain is complex, due to the increasing number of suppliers and customers who form part of it. For this reason, the use of tools that allow to improve the performance of the supply chain is necessary. Simulation Software is one of these tools. Therefore, in this paper a simulation model to improve the performance of an automotive supply chain is developed. Using sensitivity analysis, this study finds the values that allow the supply chain to improve its order fulfilment indicator. In the sensitivity analysis, the variables Cycle Time, Production Adjustment Time, Delivery Time, Raw Material Inventory, and Finished Good Inventory, were modified. The results show that: 1) in the base line scenario, only the 78.85% of the orders are fulfilled, and 2) to fulfil the 100% of the orders Cycle Time, Production Adjustment Time, and Delivery Time must be reduced to one week.

Coordination mechanisms in a two‐stage green supply chain: analyzing the impact of transportation decisions on environment

2021 ◽  
Author(s):  
Milad Darzi Ramandi ◽  
Morteza Khakzar Bafruei ◽  
Amir H. Ansaripoor ◽  
Sanjoy Kumar Paul ◽  
Md. Maruf Hossan Chowdhury
Keyword(s):  
Supply Chain ◽  
Coordination Mechanisms ◽  
Green Supply Chain ◽  
Two Stage ◽  
The Impact

scholarly journals New Retailing Problem for an Integrated Food Supply Chain in the Baking Industry

2021 ◽  
Vol 11 (3) ◽  
pp. 946
Author(s):  
Ning Xu ◽  
Yung-Fu Huang ◽  
Ming-Wei Weng ◽  
Manh-Hoang Do
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Food Supply ◽  
Optimal Solution ◽  
Integrated System ◽  
Shopping Behavior ◽  
Coordination Mechanisms ◽  
Food Supply Chain ◽  
Quantity Flexibility ◽  
Buy Back

As coronavirus disease 2019 (COVID-19) continues to spread, online consumption habits in China have changed significantly. Thus, the booming online-to-offline (O2O) food ordering and delivery industry via the online bakery have been changing customers’ food shopping behavior. This article proposes a comparison relying on advanced O2O strategy for a single-vendor-single-retailer integrated system. Three coordination mechanisms consist of revenue-sharing, buy-back, and quantity flexibility contracts have been employed for optimizing the order quantity. Replenishment strategies and temperature for the supply chain members are considered based on the new retailing framework. Herein, the authors suggest an algorithm for the computation of the optimal solution. Lastly, numerical examples and sensitivity analysis are also conducted to clarify the usefulness of the proposed model in the food supply chain. Sensitivity analysis revealed a number of managerial insights. For example, the results obtained under O2O operations can be compared with those obtained under online/offline operations (under various parameters settings) to determine an opportune moment for three coordination mechanisms.

scholarly journals Using Complete Squares Method to Optimize Replenishment Policies in a Four-Stage Supply Chain with Planned Backorders

2011 ◽  
Vol 2011 ◽  
pp. 1-9 ◽  
Author(s):  
M. E. Seliaman
Keyword(s):  
Supply Chain ◽  
Cycle Time ◽  
Differential Calculus ◽  
Algebraic Method ◽  
Inventory Model ◽  
Coordination Mechanism ◽  
Chain Model ◽  
Supply Chain Model ◽  
Replenishment Policy

We develop a four-stage, serial supply chain inventory model with planned backorders. This supply chain model is formulated for the integer multipliers coordination mechanism, where firms at the same stage of the supply chain use the same cycle time and the cycle time at each stage is an integer multiplier of the cycle time used at the adjacent downstream stage. We develop an optimal replenishment policy using a simple algebraic method to solve the problem without the use of differential calculus.

scholarly journals An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach

2019 ◽  
Vol 17 (2) ◽  
pp. 282-304
Author(s):  
Katherinne Salas-Navarro ◽  
Jaime Acevedo-Chedid ◽  
Gina Mora Árquez ◽  
Whady F. Florez ◽  
Holman Ospina-Mateus ◽  
...  
Keyword(s):  
Supply Chain ◽  
Production System ◽  
Inventory Model ◽  
Collaborative Approach ◽  
Lot Size ◽  
Defective Items ◽  
Content Type ◽  
Imperfect Production ◽  
Imperfect Items ◽  
Exponential Probability

Purpose The purpose of this paper is to propose an economic production quantity (EPQ) inventory model considering imperfect items and probabilistic demand for a two-echelon supply chain. The production process is imperfect and the imperfect quality items are removed from the lot size. The demand rate of the inventory system is random and follows an exponential probability density function and the demand of the retailers is depending on the initiatives of the sales team. Design/methodology/approach Two approaches are examined. In the non-collaborative approach, any member of the supply chain can be the leader and takes decisions to optimize the profits, and in the collaborative system, all members make joint decisions about the production, supply, sales and inventory to optimize the profits of the supply chain members. The calculus approach is applied to find the maximum profit related to the members of the supply chain. Findings A numerical example is presented to illustrate the performance of the EPQ model. The results show that collaborative approach generates greater profits to the supply chain and the market’s demand represents the variable behavior and uncertainty that is generated in the replenishment of a supply chain. Originality/value The new and major contributions of this research are: the inventory model considers demand for products is random variable which follows an exponential probability distribution function and it also depends on the initiatives of sales teams, the imperfect production system generates defective items, different cycle time are considered in manufacturer and retailers and collaborative and non-collaborative approaches are also studied.

scholarly journals Production-Inventory System for Deteriorating Items with Machine Breakdown, Inspection, and Partial Backordering

Mathematics ◽  
2019 ◽  
Vol 7 (7) ◽  
pp. 616 ◽  
Author(s):  
Kung ◽  
Huang ◽  
Wee ◽  
Daryanto
Keyword(s):  
Sensitivity Analysis ◽  
Deteriorating Items ◽  
Defective Items ◽  
Machine Breakdown ◽  
Partial Backordering ◽  
Imperfect Items ◽  
Production Inventory ◽  
Before And After ◽  
Replenishment Policy ◽  
Renewal Reward Theorem

This study considers the effects of a machine breakdown, inspection, and partial backordering for deteriorating items. Most industries try to reduce facility unavailability by implementing a regular inspection and preventive maintenance since there is a possibility that some machines will breakdown during the production process. Moreover, an emergency purchase policy can be provided for quick response to customer’s backorder. The system also produces imperfect items with different rates before and after the inspection. Rework process and post-sales warranty are launched for the defective items. Unlike previous studies, we applied a fixed-point approach and renewal reward theorem to solve the deteriorating production-inventory model while considering machine breakdown, inspection, and partial backordering. A case example and sensitivity analysis are provided. The sensitivity analysis shows the important parameters that should be considered in designing the inspection plan and the replenishment policy when facility unavailability and imperfect items exist.

scholarly journals Joint Inventory and Pricing Policy for an Online to Offline Closed-Loop Supply Chain Model with Random Defective Rate and Returnable Transport Items

Mathematics ◽  
2019 ◽  
Vol 7 (6) ◽  
pp. 497 ◽  
Author(s):  
Biswajit Sarkar ◽  
Mehran Ullah ◽  
Seok-Beom Choi
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Business Strategy ◽  
Closed Loop ◽  
Chain Model ◽  
Pricing Policy ◽  
Defective Items ◽  
Closed Loop Supply Chain ◽  
Business World ◽  
Imperfect Production Process

Environmental deterioration is one of the current hot topics of the business world. To cope with the negative environmental impacts of corporate activities, researchers introduced the concept of closed-loop supply chain (CLSC) management and remanufacturing. This paper studies joint inventory and pricing decisions in a multi-echelon CLSC model that considers online to offline (O2O) business strategy. An imperfect production process is examined with a random defective rate that follows a probability distribution. The results show that the O2O channel increases the profit of the system. For the defective rate, three different distributions are considered and three examples are solved. The results of the three examples conclude that the highest profit is generated when the defective rate follows a uniform distribution. Furthermore, based on the salvage value of defective items, two cases were studied. Results and sensitivity analysis show that the increase in defective rate does not reduce total profit in every situation, as perceived by the existing literature. Sensitivity analysis and numerical examples are given to show robustness of the model and draw important managerial insights.

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