An arborescent inventory model in a supply chain system

Po-Chung Yang · Hui‐Ming Wee

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Supply Chain and Inventory Management Sustainable Supply Chain Management Logistics and Transportation Systems

Abstract

This study develops an arborescent (tree-like) inventory model with a constant demand rate. By considering the integration of the producer, distributors and retailers, a mathematical model and an economic ordering policy are developed. It can be shown that the integrated approach results in an impressive cost-reduction compared with an independent decision by the partial party. A numerical example of an arborescent inventory system is attached to demonstrate the economic ordering policy with the help of mathematical software - Maple V.

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References

1999Inventory management and production planning and scheduling 1973An EOQ Model for Items with Weibull Distribution Deterioration 1963A model for an exponentially decaying inventory 1975Optimum production lot size model for a system with deteriorating inventory 1993Economic production lot size model for deteriorating items with partial back-ordering 1997Implementation of JIT purchasing: An integrated approach 1991An inventory model for deteriorating items 1983Analysis of inventory systems with deteriorating items

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2008An application of fuzzy set theory for supply chain coordination 2017Joint economic lot sizing model with stochastic demand and controllable lead-time by reducing ordering cost and setup cost

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