Economic ordering policy of deteriorated item for vendor and buyer: An integrated approach

Yang, Po‐Chih; Wee, Hui–Ming

doi:10.1080/09537280050051979

Cited by 134 publications

(58 citation statements)

References 5 publications

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“…The successful experiences of National Semiconductor, Wal-Mart, and Procter and Gamble have demonstrated that integrating the supply chain has significantly influenced the company's performance and market share (Simchi-Levi et al 2000). Other studies (Weng 1995;Li et al 1996;Yang and Wee 2000;Chen et al 2001) show that an integrated approach results in improved performance and increased profitability to all players in the supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

A single-vendor and a single-buyer integrated inventory model with ordering cost reduction dependent on lead time

Vijayashree

Uthayakumar

2017

J Ind Eng Int

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Lead time is one of the major limits that affect planning at every stage of the supply chain system. In this paper, we study a continuous review inventory model. This paper investigates the ordering cost reductions are dependent on lead time. This study addressed two-echelon supply chain problem consisting of a single vendor and a single buyer. The main contribution of this study is that the integrated total cost of the single vendor and the single buyer integrated system is analyzed by adopting two different (linear and logarithmic) types ordering cost reductions act dependent on lead time. In both cases, we develop effective solution procedures for finding the optimal solution and then illustrative numerical examples are given to illustrate the results. The solution procedure is to determine the optimal solutions of order quantity, ordering cost, lead time and the number of deliveries from the single vendor and the single buyer in one production run, so that the integrated total cost incurred has the minimum value. Ordering cost reduction is the main aspect of the proposed model. A numerical example is given to validate the model. Numerical example solved by using Matlab software. The mathematical model is solved analytically by minimizing the integrated total cost. Furthermore, the sensitivity analysis is included and the numerical examples are given to illustrate the results. The results obtained in this paper are illustrated with the help of numerical examples. The sensitivity of the proposed model has been checked with respect to the various major parameters of the system. Results reveal that the proposed integrated inventory model is more applicable for the supply chain manufacturing system. For each case, an algorithm procedure of finding the optimal solution is developed. Finally, the graphical representation is presented to illustrate the proposed model and also include the computer flowchart in each model.

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Section: Literature Reviewmentioning

confidence: 99%

A single-vendor and a single-buyer integrated inventory model with ordering cost reduction dependent on lead time

Vijayashree

Uthayakumar

2017

J Ind Eng Int

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“…Ha and Kim [2] analyzed the integration between the buyer and the producer by setting up a mathematical model. Yang and Wee [3] derived the integration model between the producer and the buyer for deteriorating items. SARKER BR studied the influence of the shelve products' freshness on demand.…”

Section: Introductionmentioning

confidence: 99%

An Algorithm and Implementation Based on an Agricultural EOQ Model

Cao

Chen

et al. 2015

MATEC Web of Conferences

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With the improvement of living quality, the agricultural supermarket gradually take the place of the farmers market as the trend. But the agricultural supermarkets' inappropriate inventory strategies are wasteful and inefficient. So this paper will put forward an inventory strategy for the agricultural supermarkets to lead the conductor decides when and how much to shelve the product. This strategy has significant meaning that it can reduce the loss and get more profit. The research methods are based on the inventory theory and the EOQ model, but the authors add multiple cycles' theory to them because of the agricultural products' decreasing characteristics. The research procedures are shown as follows. First, the authors do research in the agricultural supermarket to find their real conduction, and then put forward the new strategy in this paper. Second, the authors found out the model. At last, the authors search the specialty agriculture document to find the data such as the loss rate and the fresh parameters, and solve it out by MATLAB. The numerical result proves that the strategy is better than the real conduction in agricultural supermarket, and it also proves the feasibility.

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“…In these studies ''D'' units of the product is demanded per unit of time. Mak (1982), Wee (1993), Wee (1998), Chung, Liu, and Tsai (1997), Abad (2000), Yang and Wee (2000), Rau, Wu, and Wee (2003), Yang (2004a), Dye, Ouyang, and Hsieh (2007), Ouyang, Teng, Goyal, and Yang (2009), Yang, Wee, Chung, and Ho (2010) consider constant rate of demand in their studies. Bhunia and Maiti (1998), Chung and Tsai (2001), Moon, Giri, and Ko (2005), Yang (2005) and Lee and Hsu (2009) assume the demand to be a time-dependent function.…”

Section: Introductionmentioning

confidence: 99%

“…Even though developing logistics models with a supply chain perspective makes the models more realistic, implementing these models is complicated and requires collaboration between the supply chain members. Yang and Wee (2000) and develop an inventory model for a two-echelon system with constant rate for demand and deterioration in which shortages are not allowed. develop a similar model with a difference in input pattern as the model is a production/inventory system.…”

Section: Introductionmentioning

confidence: 99%

A two-echelon inventory model for a deteriorating item with stock-dependent demand, partial backlogging and capacity constraints

Ghiami

Williams

2013

European Journal of Operational Research

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Economic ordering policy of deteriorated item for vendor and buyer: An integrated approach

Cited by 134 publications

References 5 publications

A single-vendor and a single-buyer integrated inventory model with ordering cost reduction dependent on lead time

A single-vendor and a single-buyer integrated inventory model with ordering cost reduction dependent on lead time

An Algorithm and Implementation Based on an Agricultural EOQ Model

A two-echelon inventory model for a deteriorating item with stock-dependent demand, partial backlogging and capacity constraints

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