Joint replenishment policy in inventory-production systems

Hans Siajadi · R.N. Ibrahim · Paul Bertram Lochert · Weng Meng Chan

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Supply Chain and Inventory Management Sustainable Supply Chain Management Scheduling and Optimization Algorithms

Abstract

Much of the literature pertaining to Joint Replenishment Policy only takes into account the optimisation of the replenished item inventory in which the demand of each replenished item is dependent on the predetermined production cycle. This paper attempts to solve the problem of optimising the production cycle of finished item and the joint replenishment cycle of raw materials simultaneously. The considered scenario is an integrated inventory system where a single vendor consumes and purchases raw materials from a single supplier in order to produce a specific finished item. To globally optimise the integrated inventory system, a new model is developed and an algorithm is proposed to solve the model. Finally highlighting the advantage of the proposed model a case study that is followed by a comparison study is given.

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References

1999Inventory management and production planning and scheduling 1974Determination of Optimum Packaging Frequency of Items Jointly Replenished 2003An optimal policy for a single-vendor single-buyer integrated production–inventory problem with process unreliability consideration 1989Joint replenishment inventory control: Deterministic and stochastic models 2001An integrated inventory model for a single vendor and multiple buyers with ordering cost reduction 2003A new EPQ model: integrating lower pricing, rework and reject situations 1995An integrated JIT inventory model 1996A New Optimal Algorithm for the Joint Replenishment Problem

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2008A new spanning tree-based genetic algorithm for the design of multi-stage supply chain networks with nonlinear transportation costs 2013A generalized measure of bullwhip effect in supply chain with ARMA demand process under various replenishment policies 2008Optimal joint replenishment decisions for a central factory with multiple satellite factories

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