An inventory system with investment to reduce yield variability and set-up cost

Lin, Li-Chiao; Hou, Kuo-Lung

doi:10.1057/palgrave.jors.2601793

Cited by 28 publications

(10 citation statements)

References 19 publications

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“…Meanwhile, according to Glock and Ries (2012), they introduced two streams of related research: variance reduction in production process and lead time. With respect to production process, Lin and Hou (2005) and Freimer et al (2006) both studied inventory system with random yield where set-up cost and yield variability can be reduced by capital investment. Kulkarni (2008) investigated the optimal inspection and lot-sizing policy with consideration of optimal process investment for variance reduction.…”

Section: Literature Reviewmentioning

confidence: 99%

The beneficial effect of information sharing in a two-stage reverse supply chain

Son¹,

Kim²,

Omar³

2015

IJPM

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In this paper, we analyse the effect of information sharing structure in which collection and remanufacturing capacity design is considered under the stochastic environment. We consider a two-stage reverse supply chain, which consists of single collector and single remanufacturer, and these two actors collaborate with each other to share their own information in order to get better performance from system perspective. We develop four different optimisation models according to the schemes of these two actors' collaboration for information sharing. Through a numerical example, we examine the value of information sharing with consideration of variance, and identify the robustness of the models in a simulation study. From the extensive numerical analyses, we conclude that the issues who leads information sharing scheme between two actors and which information is shared can show different performance for both each individual actor and system. Furthermore, with respect to information uncertainty, the significance of variance management on return rate in a reverse supply chain is also identified. Keywords: information sharing; reverse supply chain; capacity design; newsvendor model.Reference to this paper should be made as follows: Son, Y., Kim, T. and Omar, M. (xxxx) 'The beneficial effect of information sharing in a two-stage reverse supply chain', Int.

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Section: Literature Reviewmentioning

confidence: 99%

The beneficial effect of information sharing in a two-stage reverse supply chain

Son¹,

Kim²,

Omar³

2015

IJPM

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“…Gerchak and Parlar (1990) investigated the problem of jointly determining the yield variance and lot size when the yield variability in the supply chain could be reduced through advance investment for production technology. Within a similar framework, Lin and Hou (2005) explored a problem where both the yield variability and the setup cost can be reduced via the production innovation investment before the selling season. Zhu (2007) further explored the quality improvement in the supply chain, and illustrated that the quality of the product and hence the number of usable products can be enhanced by investment.…”

Section: Introductionmentioning

confidence: 99%

Optimal ordering policy in a two-stage supply chain with advance payment for stable supply capacity

Zhang

Tsao

et al. 2016

International Journal of Production Economics

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We propose a two-stage optimization model to characterize a retailer's ordering policy in a supply chain with demand and supply uncertainties sequentially realized, where the advance payment could be conducted before the selling season to stable the supplier's capacity. Based on the model, we investigate the optimal condition of the retailer's ordering policies, and prove the existence and uniqueness of the optimal solution for the advance payment. We also investigate the supplier's pricing strategy for the retailer's advance payment. Finally, a set of numerical tests are carried out to illustrate the results. The results show that in the retailer's optimal decision, the advance payment is increased along with the supply risk and is significantly influenced by the retailing price and the supply rate; the results also give the structure of the supplier's the optimal pricing strategy for the retailer's advance payment.

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“…Following Porteus [26], several authors (e.g. [2,3,17,18,27,37]) studied the economic benefits of reducing setup cost by investing in new technology.…”

Section: Introductionmentioning

confidence: 99%

An integrated production-distribution inventory system for deteriorating products involving fuzzy deterioration and variable setup cost

Priyan

Uthayakumar

2014

Journal of Industrial and Production Engineering

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An integrated two-stage supply chain system with one supplier and one buyer for deteriorating products is considered in this study to face growing setup cost and fuzzy random deterioration rate in the real-life inventory management. This study offers strategic decision-making to produce and supplies products in order to minimize total system cost under fuzzy deterioration rate and variable setup cost environment. We consider the cases where the deterioration rate is treated as the triangular fuzzy number and the setup cost is a function of capital expenditure. We then determine the optimal policy for the proposed model using the differential calculus optimization technique after the defuzzification of the total cost function with the signed distance method. Numerical example and sensitivity analysis are given to demonstrate the application and the performance of the proposed methodology. Some managerial implications are also included.

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An inventory system with investment to reduce yield variability and set-up cost

Cited by 28 publications

References 19 publications

The beneficial effect of information sharing in a two-stage reverse supply chain

The beneficial effect of information sharing in a two-stage reverse supply chain

Optimal ordering policy in a two-stage supply chain with advance payment for stable supply capacity

An integrated production-distribution inventory system for deteriorating products involving fuzzy deterioration and variable setup cost

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