Three stage supply chain model with two warehouse, imperfect production, variable demand rate and inflation

S.R. Singh · Preety Gupta

17 citations0/0 files storedInternational Journal of Industrial Engineering Computations

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Supply Chain and Inventory Management Sustainable Supply Chain Management Optimization and Mathematical Programming

Abstract

This study develops an integrated production inventory model from the perspectives of vendor, supplier and buyer.The demand rate is time dependent for the vendor and supplier and buyer assumes the stock dependent demand rate.As per the demand, supplier uses two warehouses (rented and owned) for the storage of excess quantities.Shortages are allowed at the buyer's part only and the unfulfilled demand is partially backlogged.The effect of imperfect production processes on lot sizing is also considered.This complete model is studied under the effect of inflation.The objective is to minimize the total cost for the system.A solution procedure is developed to find a near optimal solution for the model.A numerical example along with sensitivity analysis is given to illustrate the model.

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References

1986Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction 1986Economic Production Cycles with Imperfect Production Processes 2000Economic production quantity model for items with imperfect quality 1988A Deterministic Inventory System with an Inventory-Level-Dependent Demand Rate 2005Optimal inventory model for items with imperfect quality and shortage backordering 2007Economic order quantity for items with imperfect quality: Revisited 1994Economic Production Lot Size Model with Variable Production Rate and Imperfect Quality 2003Two-warehouse inventory models for deteriorating items with shortages under inflation

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2013EOQ Model with Volume Agility, Variable Demand Rate, Weibull Deterioration Rate and Inflation

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