Integrated Supply Chain for a Single Vendor and Multiple Buyers and Products with Crashing Lead Time

Abstract

In this study, an integrated inventory model was developed among one vendor, multi buyers, and multi products. The total inventory cost to be minimized in this model is a combination of the vendor's and the buyers' total inventory costs. The total vendor inventory costs consist of setup costs and holding costs and the total inventory cost of the buyer consists of ordering costs, holding costs, stockout costs, and crashing lead time costs where the crashing lead time cost is approximated with an exponential function. Three decision variables will be calculated: the number of buyer orders, the lead time of each buyer, and the frequency of vendor shipments to all buyers in one production cycle. In this study, the optimal solution of each decision variable has been developed and applied to a case to show the use of models for finding optimal solutions. The sensitivity has also been performed to show the effects of some factors on the decision variables.

Designing a Business Model for Start-up Development of Downstream Wetland Products Based on Design Thinking

“…In fact, to maintain business continuity, currently companies have maximized the use of information technology (IT) based on the Internet of Things (IoT) to gain a competitive advantage through product offerings and help the business world to continue to innovate and facilitate online access [10,11]. Integrated supply chain collaboration for business performance based on strategic planning work models and operational multi-criteria analysis can use the Analytic Network Process method in comprehensive decision making and use ANP as supply chain collaboration for e-business performance-based frameworks to bring organizations to achieve competitive advantage [12][13][14][15][16]. This has been done by [17] in strengthening palm oil supply chain institutions, it is supported by associations, government, financial institutions and key actors to ensure the smooth running of the supply chain.…”

A simulation study of single-vendor, single and multiple-manufacturers supply chain system, with stochastic demand and two distribution policies

“…Chan et al (2018) showed that the synchronization of the buyers ordering cycle length and vendor production cycle length gives better result than both decentralised policy and common cycle policy when stock out condition permitted under stochastic demand. Aritonang et al (2020) proposed a mathematical model that minimizes the total cost for a SVMB supply chain system, where each vendor shipment is shared between multiple buyers that are experiencing stochastic demand in sales and have adjustable lead time that ensures all buyers receive equal numbers of delivery shipments. Vandana and Sana (2020) introduced ameliorating items like livestock, and the accumulated inventory is assumed to depend on the procreation and deterioration (birth) rate.…”

Techno-Economic Analysis of Healthy Herbal Ice Cream Product

“…Income is determined by the money obtained by selling the product with the deduction of tax and expenses. We predict sales of the product using an integrated supply chain model (Aritonang et al, 2020). Cash flow can be calculated by subtracting outgoings from the income.…”