Economic Production Quantity for Supply Chain System with Volume Flexibility

Author(s):  
Ding-zhong Feng ◽  
M. Yamashiro ◽  
Li-bin Zhang
2019 ◽  
Vol 3 (1) ◽  
pp. 14
Author(s):  
Jaka Permana

<p><em>Implementation of the supply chain is felt more important and very useful in today’s era  of industrialization. But in the process of supply chain encountered  various  risks that may affect the flow of the supply chain so it can not run smoothly, such as interference or imperfectness  in transportations. This research  was made to propose a mathematical model for a supply chain under the effect of unexpected disruptions  in transport. Supplier/manufacturer offers the retailer  a trade credit period t<sub>1</sub> , then the retailer offers the customer a credit with a period of t<sub>2</sub>  and finally the retailer receives the revenue from t<sub>2</sub>  ke T + t<sub>2</sub> , where T is the cycle time at the retailer.  Under this situation,  the three cases such as T ≤ t<sub>1</sub> ≤ T + t<sub>2</sub> , T ≤ T + t<sub>1</sub> ≤ t<sub>2</sub>, and  t<sub>1</sub>  ≤ t<sub>2</sub> are discussed. An EPQ (Economic Production Quantity) based model is established and retailer’s optimal replenishment policy is obtained through mathematical theorems. From the results of testing on several cases, the best solution for the two procedures has been obtained, namely between risk neutral and risk averse solutions based on the level or number of items damaged/defective. If the number of items damaged is 2 units, then solution risk neutral is far better than the risk averse solution, whereas if the number of items is damaged </em> <em>3 units, then the risk averse solution is far better than the risk neutral solution.</em></p><p class="HowToCite"> </p>


2014 ◽  
Vol 962-965 ◽  
pp. 3071-3075
Author(s):  
Li Wei Xu ◽  
Fu Cai Wan ◽  
Yu E Fan

With the widely acception of extended producer responsibility system, reverse logistics has attracted more and more attention. For manufacturers, reverse logistics activities is not inseparable to the general forward logistics, and they constitute the closed-loop supply chain. Decision makers of enterprises need to control the new products inventory and the recovered materials inventory to make the enterprises get the maximum profit.In this paper,the inventory characteristics under the closed-loop supply chain be analyzed and a inventory model for a single repair period, many production period is proposed .On condition that the number of recovery is controlled by the recycling price and is equal in different cycles,the recovered products can be sold as new.A economic production quantity and recycling price can be solved to make the total cost of a single cycle lowest ,which provides a basis for business decisions.


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