Investigation of Order-Up-To-Policy and Allocation-Rationing Mechanism for Divergent Supply Chains with Multiple Objectives

John, Kurian V.; Rajendran, Chandrasekharan; Ziegler, Holger

doi:10.1201/b20114-13

Cited by 2 publications

(6 citation statements)

References 34 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This kind of a setting is highly unlikely in real scenarios as the retailer given highest priority would be the retailer buying maximum quantity, and this setting defies that logic, and is presented in this study only to test the performance of the mathematical model under such situations. Future research could extend the present study by considering lost sales, ordering costs and stochastic demands (see John et al [22] and John et al [23] for details).…”

Section: Discussion Of the Results With Focus On The Tscscmentioning

confidence: 99%

“…Hypothetical examples are presented in Appendix-A and Appendix-B to highlight the difference between the models operating with and without backorder clearing mechanism, and between rationing and allocation approaches respectively. In the mathematical model of the supply chain with the distributor performing allocation during shortage of product, all constraints (except constraint (22), now replaced by 0 d t 1) remain the same as in the mathematical model of the supply chain with the distributor performing the rationing mechanism.…”

Section: Mathematical Formulation: Allocation Mechanism With Backorde...mentioning

confidence: 99%

“…An illustrative example to demonstrate the difference between allocation approach and rationing approach is presented. See expressions ( 9), ( 10), (11), and (22). In the mathematical model of the supply chain with the distributor rationing the on-hand inventory to retailers, the distributor is enforced to perform rationing mechanism through expressions ( 10) and (11), and (22).…”

Section: Appendix Amentioning

confidence: 99%

“…See expressions ( 9), ( 10), (11), and (22). In the mathematical model of the supply chain with the distributor rationing the on-hand inventory to retailers, the distributor is enforced to perform rationing mechanism through expressions ( 10) and (11), and (22). The computation of these expressions in a hypothetical setting on day t with rationing mechanism is as follows:…”

Section: Appendix Amentioning

confidence: 99%

“…i.e., the solver is capable of enforcing the value 50 for the variable EI D t because of expressions ( 10), (11), and (22), as this can be observed from the computations shown below, with M set as 500000.…”

Section: Appendix Amentioning

confidence: 99%

See 4 more Smart Citations

A comparative study on allocation/rationing mechanisms operational with/without backorder clearing in divergent supply chains

John¹,

Rajendran

Ziegler

2019

Sādhanā

Self Cite

View full text Add to dashboard Cite

The management of inventory in a divergent supply chain involves inventory allocation/rationing in addition to the determination of order policy parameters. In the case of a stock point feeding product(s) to several downstream members, rationing mechanism can be viewed as a special case of the allocation mechanism. In a supply chain with multi-period ordering cycles, a rationing decision ensures that the entire inventory available with the feeder stock point is rationed to downstream members, whereas an allocation decision need not allocate the entire inventory available, and it is at the discretion of the decision maker at the feeder stock point to retain inventory for possible high priority demands in future periods. In any supply chain permitting backordering of demands from downstream members, the clearing of backorders is a matter of concern. This study addresses the said issue by ensuring that the feeder stock point considers the current period demand for fulfilment only after clearing the backorders with respect to the downstream members. Through this study, an attempt is made to develop mathematical models for supply chains operating with installation-specific costs (holding and shortage) and ordering policy (base stock) over a finite time horizon with and without clearing backorders in the case of rationing as well as allocating inventory to downstream members. Specifically, this work appears to be the first comparative study on allocation and rationing mechanisms in association with/ without backorder clearing mechanisms in divergent supply chains, and their impact on the total supply chain cost.

show abstract

Section: Discussion Of the Results With Focus On The Tscscmentioning

confidence: 99%

Section: Mathematical Formulation: Allocation Mechanism With Backorde...mentioning

confidence: 99%

Section: Appendix Amentioning

confidence: 99%

Section: Appendix Amentioning

confidence: 99%

Section: Appendix Amentioning

confidence: 99%

See 3 more Smart Citations

A comparative study on allocation/rationing mechanisms operational with/without backorder clearing in divergent supply chains

John¹,

Rajendran

Ziegler

2019

Sādhanā

Self Cite

View full text Add to dashboard Cite

show abstract

A Contemporary Approach to Plan Independent Logistics Actors

Taghipour

2018

Contemporary Approaches and Strategies for Applied Logistics

View full text Add to dashboard Cite

Companies are dependent on the resources and information of other members of the supply chains. To manage their resources, companies use coordination mechanisms. Despite the inter-dependency between logistics actors, they are independent units with conflicting objectives. These two characteristics can increase the complexity of planning in logistics networks. According to the literature of supply chain management, some mechanisms largely use the information shared by members to achieve an optimal solution and some others are based on minimum level of information sharing. This chapter addresses the coordination problem in a logistics networks with more than two partners, while the information is in a private element that is not exchanged with other partners.

show abstract

Investigation of Order-Up-To-Policy and Allocation-Rationing Mechanism for Divergent Supply Chains with Multiple Objectives

Cited by 2 publications

References 34 publications

A comparative study on allocation/rationing mechanisms operational with/without backorder clearing in divergent supply chains

A comparative study on allocation/rationing mechanisms operational with/without backorder clearing in divergent supply chains

A Contemporary Approach to Plan Independent Logistics Actors

Contact Info

Product

Resources

About