scholarly journals An imperfect production inventory model with advance payment and credit period in a two-echelon supply chain management

2020 ◽  
Author(s):  
J.K. DEY ◽  
Barun Khara ◽  
Shyamal Kumar Mondal
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Inventory Model ◽  
Production Cycle ◽  
Optimum Number ◽  
Chain Management ◽  
Purchasing Cost ◽  
Imperfect Production ◽  
Advance Payment ◽  
Production Inventory

This paper presents an integrated imperfect production inventory model under two layer supply chain management. To ensure the orders, manufacturer convinces the retailer to pay a percentage of the purchasing cost prior to replenish the products and offers the facilities such as (i) delay in payment on the remaining part of the purchasing cost and (ii) free transportation on the basis of advance payment amount. Time dependent development cost is incurred to maintain the reliability of the production system and as a result it reduces the imperfectness of the product during production. Under such circumstances, an integrated profit function has been developed to find the optimum number of production cycle, optimum number of replenishment cycle and hence reliability parameter of the manufacturing system, replenishment quantity for the retailer which maximize the integrated profit. Branch and Bound technique is used to obtain the integer solutions. Furthermore, we derived some useful lemmas and algorithms to obtain the optimum solution. Finally, the model has been illustrated with some numerical examples exploring the sensitivity analysis with respect to some parameters and obtains some managerial insights.

scholarly journals Implementing Green Supply Chain Management for Online Pharmacies through a VADD Inventory Model

2019 ◽  
Vol 16 (22) ◽  
pp. 4454 ◽  
Author(s):  
Yan-Kwang Chen ◽  
Fei-Rung Chiu ◽  
Yu-Cheng Chang
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Solution Procedure ◽  
Inventory Model ◽  
Green Supply Chain Management ◽  
Green Supply Chain ◽  
Chain Management ◽  
Web Interfaces ◽  
Online Pharmacy ◽  
Online Pharmacies

Online pharmacies are an important part of the modern healthcare system. They interact with customers through well-designed web interfaces to deliver the healthcare customers need. In addition to well-designed web interfaces, online pharmacies rely on an effective supply chain system to provide medical supplies and services, and especially effective inventory management for supply systems. As green supply chain management (GSCM) becomes increasingly considered by countries, how to develop a sustainable inventory model that takes into account the revenue growth of an online pharmacy while preventing waste and reducing energy costs has become very important. In line with this trend, the study develops a sustainable inventory model that focuses on both economic aspect (profit) and environmental aspect (losses from excessive inventory) within a framework of a single period multi-product inventory model. Specifically, the sustainable inventory model applies the visual-attention-dependent demand (VADD) rate to characterize customer demand in an online trading environment, thereby seeking a profitable marketing strategy and reducing losses due to excessive inventory. Since the complexity of model optimization will drastically increase due to the inclusion of many products in the problem, a Genetic Algorithm (GA) based solution procedure is proposed to increase the feasibility of the proposed model in solving real problems. The sustainable inventory model and the solution procedure are illustrated, compared, and discussed with an online pharmacy example. Additionally, a sensitivity analysis is formulated to study the influence of model parameters on the model solution, the loss of unsold inventory that results in a waste of resources and energy, and the profit of online pharmacies.

scholarly journals How Does a Radio Frequency Identification Optimize the Profit in an Unreliable Supply Chain Management?

Mathematics ◽  
2019 ◽  
Vol 7 (6) ◽  
pp. 490 ◽  
Author(s):  
Rekha Guchhait ◽  
Sarla Pareek ◽  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Radio Frequency ◽  
Radio Frequency Identification ◽  
Revenue Sharing ◽  
Advanced Technology ◽  
Optimum Number ◽  
Chain Management ◽  
Optimum Distance ◽  
Frequency Identification

Competition in business is higher in the electronics sector compared to other sectors. In such a situation, the role of a manufacturer is to manage the inventory properly with optimized profit. However, the problem of unreliability within buyers still exists in real world scenarios. The manufacturer adopts the radio frequency identification (RFID) technology to manage the inventory, which can control the unreliability, the inventory pooling effect, and the investment on human labor. For detecting RFID tags, a reasonable number of readers are needed. This study investigates the optimum distance between any two readers when using the optimum number of readers. As a vendor managed inventory (VMI) policy is utilized by the manufacturer, a revenue sharing contract is adopted to prevent the loss of buyers. The aim of this study is to maximize the profits of a two-echelon supply chain management under an advanced technology system. As the life of electronic gadgets is random, it may not follow any specific type of distribution function. The distribution-free approach helps to solve this issue when the mean and the standard deviation are known. The Kuhn-Tucker methodology and classical optimization are used to find the global optimum solution. The numerical analysis demonstrates that the manufacturer can earn more profit in coordination case after utilizing revenue sharing and the optimum distance between readers optimizing cost related to the RFID system. Sensitivity analysis is performed to check the sensibility of the parameters.

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