scholarly journals Optimal Pricing and Ordering Policy for Two Echelon Varying Production Inventory System

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Brojeswar Pal ◽  
Shib Sankar Sana ◽  
Kripasindhu Chaudhuri
Keyword(s):  
Supply Chain ◽  
Raw Materials ◽  
Chain Model ◽  
Selling Price ◽  
Lot Size ◽  
Ordering Policy ◽  
Supply Chain Model ◽  
Production Inventory ◽  
Test Feasibility ◽  
Optimal Ordering

The paper proposes a two-stage supply chain model for price sensitive demand in imperfect production system while manufacturer and supplier are the members of the chain. The supplier screens the raw materials first and supplies good materials to the manufacturer at a constant rate. The production rate varies randomly within a finite interval. The inventory cycle of the manufacturer starts with shortages and production and it finishes with shortages again, in which shortages are partially backlogged. We consider a mixture of LIFO (last in, first out) and FIFO (first in, first out) dispatching policies to fill the backlogged demand. Thus, the objective of the proposed paper is to determine the optimal ordering lot-size and selling price of the manufacturer such that the per unit average integrated expected profit of the supply chain model is maximized. A numerical example is provided to analyze and illustrate the behavior and application of the model. Finally, sensitivity analysis of the key parameters are presented to test feasibility of the model.

Three-Layer Supply Chain Production/By-Production Inventory Model Under Fuzzy Rough Environment

2018 ◽  
Vol 17 (01) ◽  
pp. 61-88
Author(s):  
Prasanta Kr Ghosh ◽  
Samar Hazari ◽  
Jayanta Kumar Dey ◽  
Samarjit Kar
Keyword(s):  
Supply Chain ◽  
Raw Materials ◽  
Chain Model ◽  
Holding Costs ◽  
Setup Costs ◽  
Decision Variables ◽  
Constant Rate ◽  
Supply Chain Model ◽  
Production Inventory ◽  
Inventory Holding

An integrated three-layer supply chain model for production and by-production system is formulated under fuzzy-rough (Fu-Ro)-environment. At first, supplier receives the deteriorating items in a lot and supplies the fresh units to manufacturer for production. Manufacturer has two plants: plant-1 and plant-2. Manufacturer purchases these fresh raw materials at a constant rate from supplier to produce the main product in plant-1. Retailer-I has purchased this product from manufacturer of plant-1 to sale to the customers. The residue units of plant-1 have transferred to plant-2 with constant rate to manufacture another usable by-product. Retailer-II purchases this usable by-product and sales to the customers. Ideal costs of supplier, manufacturer and retailer have been taken into account. By-production of residue units of plant-1 not only minimizes the environmental pollution, but also gives some return to the manufacturer. Due to the complexity of environment, inventory holding costs, idle costs and setup costs are considered as Fu-Ro type and these are reduced to crisp ones using Fu-Ro expectation. Supply rate, production and by-production rates are assumed as decision variables. Integrated model has been developed and solved analytically in crisp and Fu-Ro environments to find the optimum value of the decision variables and corresponding individual profits of the members of the supply chain are calculated numerically and graphically. Finally, the model has been realized with a case study of sugar mill.

Modeling and Simulation of Lean Supply Chain with the Consideration of Delivery Consolidation

2011 ◽  
Vol 467-469 ◽  
pp. 853-858 ◽  
Author(s):  
Zhou Miao ◽  
Ke Lin Xu
Keyword(s):  
Supply Chain ◽  
Programming Model ◽  
Chain Model ◽  
Ant Colony Optimization Algorithm ◽  
Optimal Frequency ◽  
Non Linear Programming ◽  
Supply And Distribution ◽  
Supply Chain Model ◽  
Production Inventory ◽  
Lean Supply Chain

An integrated production-inventory-delivery lean supply chain model is discussed. The model is integrated with production, supply and distribution through cost. And the delivery of purchasing and distribution is consolidated. A non-linear programming model with multivariable is proposed. The length of path and the frequency of delivery are regarded as decision-making variables. The optimal delivery path and the length of path are first solved by using improved ant colony optimization algorithm. And the optimal frequency of delivery and the batch of delivery are achieved. Last, the model is validated through an example and the result indicates the model is simple and practical. Moreover it is meaningful for practice.

scholarly journals Effects of Preservation Technology Investment on Waste Generation in a Two-Echelon Supply Chain Model

Mathematics ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 189 ◽  
Author(s):  
Mehran Ullah ◽  
Biswajit Sarkar ◽  
Iqra Asghar
Keyword(s):  
Supply Chain ◽  
Integrated System ◽  
Environmental Benefits ◽  
Production Cycle ◽  
Decision Variable ◽  
Chain Model ◽  
Lot Size ◽  
Technology Investment ◽  
Preservation Technology ◽  
Production Inventory

This study develops an integrated production-inventory model for a two-echelon supply chain network with controllable probabilistic deterioration. The investment in preservation technology is considered a decision variable to control the deteriorated quantity of an integrated system. The objective of the study is to optimize preservation investment, the number of shipments and shipment quantity, so that the total cost per unit of time of the supply chain is minimized. The study proposes a solution method, and the results show that investment in preservation technology reduces the total supply chain cost by 13%. Additionally, preservation increases the lot size, thus increasing the production cycle length, which reduces the ordering cost of the system. Furthermore, this study shows that preservation leads to a reduction of solid waste from deteriorated products. Total deteriorated products reduced to 8 units from 235 units, hence, preservation generates positive environmental benefits along with economic impacts. The robustness of the proposed model is illustrated with a numerical example, sensitivity analysis, and graphical representations. Moreover, comparative study and managerial insights are given to extract significant insights from the model.

scholarly journals Lead-time Dependent Ordering Cost Reduction and Trade-credit: A Supply Chain Model with Stochastic Demand and Rework

2020 ◽  
Vol 8 (5) ◽  
pp. 5113-5117
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Lead Time ◽  
Trade Credit ◽  
Chain Model ◽  
Lot Size ◽  
Expected Cost ◽  
Production Run ◽  
Supply Chain Model ◽  
Ordering Cost Reduction

This study focuses on an integrated vendor-buyer supply chain model where the lead-time and ordering cost reduction act dependently. The lead time demand of a product follows a normal distribution. The manufacturing process is imperfect. During production run time, a certain percentage of defective products are produced, which are immediately reworked. Trade-credit financing has been taken into consideration. The goal of this study is to minimize the joint total expected cost by providing an inter-dependent reduction strategy of lead-time and ordering cost along with the determination of the optimal values of lead-time, number of deliveries, order lot size, ordering cost, lead-time crashing cost, and the joint total expected cost. A solution algorithm and a numerical example are presented to illustrate and establish the integrated model. This model can be used in textiles, automobiles and computers industries.

scholarly journals A Green Integrated Inventory Model for a Three-Tier Supply Chain of an Agricultural Product

2020 ◽  
Vol 8 (2) ◽  
pp. 73-86
Author(s):  
S. M. Shahidul Islam ◽  
Risat Hossain ◽  
Mst. Jamila Yasmin
Keyword(s):  
Supply Chain ◽  
Raw Materials ◽  
Solution Procedure ◽  
Agricultural Products ◽  
Green Supply Chain Management ◽  
Green Supply Chain ◽  
Agricultural Product ◽  
Chain Model ◽  
Human Beings ◽  
Supply Chain Model

Green supply chain management coordinates environment issues into the supply chain business. It has been popular to both academicians and practitioners. Smooth supply of processed agricultural products is essential for human beings and pets. In some models, excess raw materials, byproducts and defected products are kept neglected in producing and marketing finished products. Here, we have presented a three-tier green supply chain model for an agricultural product where byproducts are used for some purposes. Solution procedure of the model is derived. We have demonstrated the model using two numerical example problems.

A Three-Level Supply Chain Model with Necessity Measure

2017 ◽  
pp. 305-321
Author(s):  
Barun Das
Keyword(s):  
Supply Chain ◽  
Time Horizon ◽  
Raw Materials ◽  
Chain Model ◽  
Chain Management ◽  
Inventory Costs ◽  
Supply Chain Model ◽  
Finite Time Horizon ◽  
Fuzzy Inventory ◽  
Open Markets

In this chapter, a vertical information sharing in terms of inventory replenishment / requirement from the customer(s)? retailer(s)? producer? supplier(s) has been done. The constant imprecise fuzzy demands of the goods are made to the retailers by the customers. These goods are produced (along with defectiveness, which decreases due to learning effects) from the raw materials in the producer's production center with a constant production rate (to be determined). Producer stores these raw materials in a warehouse by purchasing these from a supplier and the suppliers collect these raw materials from open markets at a constant collection rate (to be determined). The whole system is considered in a finite time horizon with fuzzy demand for finished products and fuzzy inventory costs. Here shortages are allowed and fully backlogged. The fuzzy chance constraints on the available space of the producer and transportation costs for both producer, retailers are defuzzified using necessity approach. Results indicate the efficiency of proposed approach in performance measurement. This paper attempts to provide the reader a complete picture of supply chain management through a systematic literature review.

scholarly journals Effect of Unequal Lot Sizes, Variable Setup Cost, and Carbon Emission Cost in a Supply Chain Model

2015 ◽  
Vol 2015 ◽  
pp. 1-13 ◽  
Author(s):  
Biswajit Sarkar ◽  
Sharmila Saren ◽  
Debjani Sinha ◽  
Sun Hur
Keyword(s):  
Supply Chain ◽  
Carbon Emission ◽  
Graphical Representation ◽  
Chain Model ◽  
Lot Size ◽  
Setup Cost ◽  
Defective Items ◽  
Supply Chain Model ◽  
Investment Function ◽  
Optimum Solution

Due to heavy transportation for single-setup multidelivery (SSMD) policy in supply chain management, this model assumes carbon emission cost to obtain a realistic behavior for world environment. The transportation for buyer and vendor is considered along with setup cost reduction by using an investment function. It is assumed that the shipment lot size of each delivery is unequal and variable. The buyer inspects all received products and returns defective items to vendor for reworking process. Because of this policy, end customers will only obtain nondefective items. The analytical optimization is considered to obtain the optimum solution of the model. The main goal of this paper is to reduce the total cost by considering carbon emission during the transportation. A numerical example, graphical representation, and sensitivity analysis are given to illustrate the model.

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