scholarly journals Optimal Decision for Fashion Supply Chains with Service Level Constraint and Controllable Lead Time

2015 ◽  
Vol 2015 ◽  
pp. 1-9 ◽  
Author(s):  
Guo Li ◽  
Yu-chen Kang ◽  
Guan Xu
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Exponential Distribution ◽  
Lead Time ◽  
Unit Cost ◽  
Service Level ◽  
Safety Factors ◽  
Controllable Lead Time ◽  
Production Quantity ◽  
Ordering Quantity

We study a two-echelon supply chain inventory model with controllable lead time and service level constraint in fashion supply chains, in which we assume that the unit cost of compressing lead time follows exponential distribution. Under these conditions we investigate the optimal ordering quantity and production quantity in the fashion supply chain by minimizing the joint total cost. Simultaneously, we work out the boundaries of ordering quantity and production quantity, which simplify the computation. Furthermore, numerical examples are presented to test the feasibility of the model. The results show that assuming the unit cost of compressing lead time in accordance with exponential distribution is realistic. It also notices that the optimal order and production decision for fashion supply chains are constrained obviously by the service level and safety factors. What is more, the holding cost rate of both the service level and safety factors has a certain influence on it. And by further analyzing on some references in the last part, we have done some extensions and found some interesting results.

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 Misplaced Inventory and Lead-Time in the Supply Chain: Analysis of Decision-Making on RFID Investment with Service Level

2014 ◽  
Vol 2014 ◽  
pp. 1-17
Author(s):  
Li-Hao Zhang ◽  
Ti-Jun Fan ◽  
Wen-Chyuan Chiang ◽  
Feng Tao
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Lead Time ◽  
Service Level ◽  
Transfer Payment ◽  
Rfid Technology ◽  
Widespread Application ◽  
Service Levels ◽  
Rfid Tag ◽  
The Cost

Radio-frequency identification (RFID), as the key technology of Internet of Things (IoT), has been hailed as a major innovation to solve misplaced inventory and reduce lead-time. Many retailers have been pushing their suppliers to invest this technology. However, its associated costs seem to prohibit its widespread application. This paper analyzes the situation of service level in a retail supply chain, which has resulted from misplaced inventory and lead-time. By newsvendor model, we analyze the difference between with- and without-RFID technologies in service level of centralized and decentralized supply chains, respectively. Then with different service levels, we determine the tag cost thresholds at which RFID technology investment becomes profitable in centralized and decentralized supply chains, respectively. Furthermore, we apply a linear transfer payment coefficient strategy to coordinate with the decentralized supply chain. It is found that whether the adoption of RFID technology improves the service level depends on the cost of RFID tag in the centralized system, but it improves the service level in the decentralized system when only the supplier bears the cost of RFID tag. Moreover, the same cost thresholds of RFID tag with different service levels exist in both the centralized and the decentralized cases.

scholarly journals Three-Echelon Inventory Model with Permissible Delay in Payments under Controllable Lead Time and Backorder Consideration

2014 ◽  
Vol 2014 ◽  
pp. 1-16 ◽  
Author(s):  
M. F. Yang ◽  
Wei-Chung Tseng
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Critical Issue ◽  
Solution Procedure ◽  
Inventory Model ◽  
Permissible Delay In Payments ◽  
Inventory Policy ◽  
Controllable Lead Time ◽  
Key Factor ◽  
Delay In Payments

This paper proposes a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration to find out the suitable inventory policy to enhance profit of the supply chain. In today’s highly competitive market, the supply chain management has become a critical issue in both practice and academic and supply chain members have to cooperate with each other to bring more benefits. In addition, the inventory policy is a key factor to influence the performance of the supply chain. Therefore, in this paper, we develop a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration. Furthermore, the purpose of this paper is to maximize the joint expect total profit on inventory model and attempt to discuss the inventory policy under different conditions. Finally, with a numerical example provided here to illustrate the solution procedure, we may discover that decision-makers can control lead time and payment time to enhance the performance of the supply chain.

scholarly journals Comparison of particular logistic models’ adoption in the Czech Republic

2016 ◽  
Vol 6 (1) ◽  
Author(s):  
Petra Vrbová ◽  
Václav Cempírek
Keyword(s):  
Supply Chain ◽  
Czech Republic ◽  
Lead Time ◽  
Logistic Model ◽  
Logistic Models ◽  
Service Level ◽  
Time Service ◽  
The Czech Republic ◽  
Total Cost ◽  
Challenging Tasks

Abstract Managing inventory is considered as one of the most challenging tasks facing supply chain managers and specialists. Decisions related to inventory locations along with level of inventory kept throughout the supply chain have a fundamental impact on the response time, service level, delivery lead-time and the total cost of the supply chain. The main objective of this paper is to identify and analyse the share of a particular logistic model adopted in the Czech Republic (Consignment stock, Buffer stock, Safety stock) and also compare their usage and adoption according to different industries. This paper also aims to specify possible reasons of particular logistic model preferences in comparison to the others. The analysis is based on quantitative survey held in the Czech Republic.

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