Articlegold2019

A Two-Echelon Supply Chain Management With Setup Time and Cost Reduction, Quality Improvement and Variable Production Rate

Bikash Koli Dey · Biswajit Sarkar · Sarla Pareek

37 citations0/0 files storedMathematics

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Supply Chain and Inventory Management Management and Optimization Techniques Sustainable Supply Chain Management

Abstract

This model investigates the variable production cost for a production house; under a two-echelon supply chain management where a single vendor and multi-retailers are involved. This production system goes through a long run system and generates an out-of-control state due to different issues and produces defective items. This model considers the reduction of the defective rate and setup cost through investment. A discrete investment for setup cost reduction and a continuous investment is considered to reduce the defective rate and to increase the quality of products. Setup and processing time are dependent on lead time in this model. The model is solved analytically to find the optimal values of the production rate, safety factors, optimum quantity, lead time length, investment for setup cost reduction, and the probability of the production process going out-of-control. An efficient algorithm is constructed to find the optimal solution numerically and sensitivity analysis is given to show the impact of different parameters. A case study and different cases are also given to validate the model.

Citations in this library

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References

1986A JOINT ECONOMIC‐LOT‐SIZE MODEL FOR PURCHASER AND VENDOR 1977An integrated inventory model for a single supplier-single customer problem 1993The Distribution Free Newsboy Problem: Review and Extensions 1991An Analytical Determination of Lead Time with Normal Demand 1994Inventory Models Involving Lead Time as a Decision Variable 1996Mixture Inventory Model with Backorders and Lost Sales for Variable Lead Time 2012A production-inventory model with probabilistic deterioration in two-echelon supply chain management 1994Economic Production Lot Size Model with Variable Production Rate and Imperfect Quality

Cited by

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