Joint replenishment policy in inventory-production systems

Siajadi, Hans; Ibrahim, Raafat N; Lochert, Paul Bertram; Chan, Weng Meng

doi:10.1080/09537280500033213

Cited by 23 publications

(11 citation statements)

References 13 publications

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“…Note that the transportation charge could be complicated in the real world. For example, the company may offer a price table with all-unit discount, incremental discount or a price table with indifference points, see Russell and Krajewski (1991) and Siajadi et al (2005) for details. We note that it is almost impossible to learn the exact objective function value before one determines the values of the decision variables in the mathematical model.…”

Section: More Complicated Versionsmentioning

confidence: 99%

A new spanning tree-based genetic algorithm for the design of multi-stage supply chain networks with nonlinear transportation costs

Yao

Hsu

2008

Optim Eng

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The design of configuration and the transportation planning are crucial issues to the effectiveness of multi-stage supply chain networks. The decision makers are interested in the determination the optimal locations of the hubs and the optimal transportation routes to minimize the total costs incurred in the whole system. One may formulate this problem as a 0-1 mixed integer non-linear program though commercial packages are not able to efficiently solve this problem due to its complexity. This study proposes a new spanning tree-based Genetic Algorithm (GA) using determinant encoding for solving this problem. Also, we employ an efficient heuristic that fixes illegal spanning trees existing in the chromosomes obtained from the evolutionary process of the proposed GA. Our numerical experiments demonstrate that the proposed GA outperforms the other previously published GA in the solution quality and convergence rate.

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Section: More Complicated Versionsmentioning

confidence: 99%

A new spanning tree-based genetic algorithm for the design of multi-stage supply chain networks with nonlinear transportation costs

Yao

Hsu

2008

Optim Eng

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“…Khouja (2003) assumed no incentives scheme for coordination. Siajadi, Ibrahim, Lochert, and Chan (2005) presented an integrated inventory system where a manufacturer consumes and purchases raw materials from a supplier in order to produce a specific finished item. They assumed that these defective items can be reworked instantaneously at a cost and kept in stock.…”

Section: Introductionmentioning

confidence: 99%

“…They assumed that these defective items can be reworked instantaneously at a cost and kept in stock. Siajadi et al (2005) also assumed a random percentage of defective items per lot, and no incentive scheme for coordination. This paper investigates the work of Khouja (2005), who assumed the number of defectives per lot to be proportional to the lot size, in a centralized model where players in a two-level (manufacturer-retailer) supply chain coordinate their orders to minimize their local costs and that of the chain.…”

Section: Introductionmentioning

confidence: 99%

Coordinating a two-level supply chain with production interruptions to restore process quality

Saadany

Jaber

2008

Computers & Industrial Engineering

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“…Siajadi et al (2005) analysed scenario is that a single buyer (or a group of buyers), demand(s) a particular type of end/finished item where back-order is not allowed. The delivery of the finished item to the customer is based on multiple small deliveries of equal size, Q, instead of a lot-for-lot basis.…”

Section: Multiple Itemsmentioning

confidence: 99%

Quantitative Models for Centralised Supply Chain Coordination

Jaber¹,

Zolfaghari²

2008

Supply Chain

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IntroductionA supply chain is defined as a network of facilities and distribution options that perform the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Managing such functions along the whole chain; that is, from the supplier's supplier to the customer's customer; requires a great deal of coordination among the players in the chain. The effectiveness of coordination in supply chains could be measured in two ways: reduction in total supply chain costs and enhanced coordination services provided to the end customer ⎯ and to all players in the supply chain. Inventory is the highest cost in a supply chain accounting for almost 50% of the total logistics costs. Integrating order quantities models among players in a supply chain is a method of achieving coordination. For coordination to be successful, incentive schemes must be adopted. The literature on supply chain coordination have proposed several incentive schemes for coordination; such as quantity discounts, permissible delay in payments, price discounts, volume discount, common replenishment periods. The available quantitative models in supply chain coordination consider up to four levels (i.e., tier-1 supplier, tier-2 supplier, manufacturer, and buyer), with the majority of studies investigating a two-level supply chain with varying assumptions (e.g., multiple buyers, stochastic demand, imperfect quality, etc). Coordination decisions in supply chains are either centralized or decentralized decision-making processes. A centralized decision making process assumes a unique decision-maker (a team) managing the whole supply chain with an objective to minimize (maximize) the total supply chain cost (profit), whereas a decentralized decision-making process involves multiple decision-makers who have conflicting objectives. This chapter will review the literature for quantitative models for centralised supply chain coordination that emphasize inventory management for the period from 1990 to end of 2007. In this chapter, we will classify the models on the basis of incentive schemes, supply chain levels, and assumptions. This chapter will also provide a map indicative of the limitations of the available studies and steer readers to future directions along this line of research. Centralised supply chain coordinationA typical supply chain consists of multistage business entities where raw materials and components are pushed forward from the supplier's supplier to the customer's customer. During this forward push, value is gradually added at each entity in the supply chain transforming raw materials and components to take their final form as finished products at the customer's end, the buyer. These business entities may be owned by the same organization or by several organizations. Goyal & Gupta (1989) suggested that coordination could be achieved by integrating lotsizing models. However, coordinating orders among players in a supply chain might...

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Joint replenishment policy in inventory-production systems

Cited by 23 publications

References 13 publications

A new spanning tree-based genetic algorithm for the design of multi-stage supply chain networks with nonlinear transportation costs

A new spanning tree-based genetic algorithm for the design of multi-stage supply chain networks with nonlinear transportation costs

Coordinating a two-level supply chain with production interruptions to restore process quality

Quantitative Models for Centralised Supply Chain Coordination

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