scholarly journals Distribution-Free Continuous Review Inventory Model with Controllable Lead Time and Setup Cost in the Presence of a Service Level Constraint

2012 ◽  
Vol 2012 ◽  
pp. 1-16 ◽  
Author(s):  
Wei-Min MA ◽  
Bing-Bing QIU
Keyword(s):  
Lead Time ◽  
Programming Model ◽  
Lagrange Function ◽  
Service Level ◽  
Solution Algorithm ◽  
Setup Cost ◽  
Worst Case ◽  
Continuous Review ◽  
Proposed Model ◽  
Controllable Lead Time

Based on the mean and the standard deviation of lead time demand, and also taking the difficulty in measuring shortage cost into consideration, we investigate the joint decision problem of continuous review inventory in which a service level constraint should be satisfied. Under the assumption of controllable lead time and setup cost, a mathematical programming model is established. The objective function of the proposed model is the total expected annual cost and the constraint guarantees that the service level requirement can be satisfied at the worst case. Subsequently, an equivalent nonlinear programming model is derived. By constructing Lagrange function, the analysis regarding the solution procedure is conducted, and a solution algorithm is then provided. Moreover, a numerical example is introduced to illustrate the proposed model and solution algorithm. Through sensitivity analysis, some observations and managerial implications are provided.

Controllable lead time, service level constraint, and transportation discounts in a continuous review inventory model

2016 ◽  
Vol 50 (4-5) ◽  
pp. 921-934 ◽  
Author(s):  
Dongmin Shin ◽  
Rekha Guchhait ◽  
Biswajit Sarkar ◽  
Mandeep Mittal
Keyword(s):  
Lead Time ◽  
Service Level ◽  
Inventory Model ◽  
Time Service ◽  
Continuous Review ◽  
Controllable Lead Time

Supply Chain Coordination Under Service Level Constraint and Controllable Lead Time

2016 ◽  
Vol 7 (2) ◽  
pp. 84-106 ◽  
Author(s):  
Prashant Jindal ◽  
Anjana Solanki
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Lead Time ◽  
Cost Allocation ◽  
Optimal Solution ◽  
Service Level ◽  
Decision Variable ◽  
Allocation Model ◽  
Controllable Lead Time ◽  
Ordering Cost Reduction

This paper investigates the coordination issue in a decentralized supply chain having a vendor and a buyer for a defective product. The authors develop two inventory models with controllable lead time under service level constraint. The first one is propose under decentralized mode based on the Stackelberg model, the other one is propose under centralized mode of the integrated supply chain. Ordering cost reduction is also including as a decision variable along with shipping quantity, lead time and number of shipments. Computational findings using the software Matlab 7.0 are provided to find the optimal solution. The results of numerical examples show that centralized mode is better than that of decentralized mode, and to induce both vendor and buyer for coordination, proposed cost allocation model is effective. The authors also numerically investigate the effects of backorder parameter on the optimal solutions. Benefit of ordering cost reduction in both models is also provided.

scholarly journals Fuzzy Constrained Probabilistic Inventory Models Depending on Trapezoidal Fuzzy Numbers

2016 ◽  
Vol 2016 ◽  
pp. 1-10 ◽  
Author(s):  
Mona F. El-Wakeel ◽  
Kholood O. Al-yazidi
Keyword(s):  
Exact Solutions ◽  
Lead Time ◽  
Fuzzy Numbers ◽  
Total Cost ◽  
Continuous Review ◽  
Fuzzy Models ◽  
First Case ◽  
Proposed Model ◽  
Special Cases ◽  
Cost Components

We discussed two different cases of the probabilistic continuous review mixture shortage inventory model with varying and constrained expected order cost, when the lead time demand follows some different continuous distributions. The first case is when the total cost components are considered to be crisp values, and the other case is when the costs are considered as trapezoidal fuzzy number. Also, some special cases are deduced. To investigate the proposed model in the crisp case and the fuzzy case, illustrative numerical example is added. From the numerical results we will conclude that Uniform distribution is the best distribution to get the exact solutions, and the exact solutions for fuzzy models are considered more practical and close to the reality of life and get minimum expected total cost less than the crisp models.

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