Optimal and heuristic base-stock levels and rationing policy for a divergent supply chain

Paul, Brijesh; Rajendran, Chandrasekharan

doi:10.1504/ijise.2010.032967

Cited by 9 publications

(7 citation statements)

References 23 publications

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“…The supply chain fill rate is weighted by 0.5 and the other factors are weighted by 0.25 each. Table (6) shows part of the obtained results of a single scenario.…”

Section: Resultsmentioning

confidence: 99%

“…It equals the sum of the inventory holding cost, lost sales, ordering, and transportation costs over the planning horizon (Pamulety et al [10] ). (6). The initial inventory, for all experimentations, is set to be 150,000 units.…”

Section: Total Cost Of Supply Chain (Tcsc)mentioning

confidence: 99%

“…The performance of the proposed policy is compared with the known inventory position-based policies: OUT policy (Order-Up-To), (s, S) policy, and (s, Q) policy. s, S and Q refer to reorder level, order-up-to level, and fixed order size [6]. The proper choice of inventory policy has an important role in supply chain performance such as operational cost reduction, production plan smoothness and the customer service level maximization [7] [8] [9].…”

Section: Introductionmentioning

confidence: 99%

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Inventory Policy for Improved Supply Chain Performance Under Constrained Supply

Afifi

El-Kharbotly

Shedid

2020

Journal of Al-Azhar University Engineering Sector

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This paper proposes and evaluates an inventory policy of position-based type to enhance the supply chain performance under supplier capacity constraints. The proposed policy has been assessed, for different demand scenarios, by the fill rate, bullwhip effect, and total cost of the supply chain. For all scenarios, the supply chain performance of the proposed policy has been compared with the performance of other known inventory policies, such as Order-Up-To, (s, S), and (s, Q) using modeling and simulation methodology. The results show performance improvements using the proposed policy compared to the other policies. It provides a guide line for industrial managers, facing supplier capacity constraints, to select the best inventory policy under different operating conditions in a supply chain.

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“…The supply chain fill rate is weighted by 0.5 and the other factors are weighted by 0.25 each. Table (6) shows part of the obtained results of a single scenario.…”

Section: Resultsmentioning

confidence: 99%

Section: Total Cost Of Supply Chain (Tcsc)mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Inventory Policy for Improved Supply Chain Performance Under Constrained Supply

Afifi

El-Kharbotly

Shedid

2020

Journal of Al-Azhar University Engineering Sector

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“…Lagodimos and Koukoumialos [1] provided the definition for rationing and allocation which are followed in this paper. Paul and Rajendran [13] proposed exact and heuristic techniques to solve the problem of inventory optimization in a divergent supply chain. The authors proposed a rationing policy termed as Fractional Rationing (FR) policy, which calculates fractions heuristically to arrive at the rationing quantity.…”

Section: Review Of Literaturementioning

confidence: 99%

“…The authors proposed a rationing policy termed as Fractional Rationing (FR) policy, which calculates fractions heuristically to arrive at the rationing quantity. Paul and Rajendran [13] use the definition of rationing that Lagodimos and Koukoumialos [1] proposed in their work.…”

Section: Review Of Literaturementioning

confidence: 99%

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

John¹,

Rajendran

Ziegler

2019

Sādhanā

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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.

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Rationing mechanisms and inventory control-policy parameters for a divergent supply chain operating with lost sales and costs of review

Paul

Rajendran

2011

Computers & Operations Research

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Optimal and heuristic base-stock levels and rationing policy for a divergent supply chain

Cited by 9 publications

References 23 publications

Inventory Policy for Improved Supply Chain Performance Under Constrained Supply

Inventory Policy for Improved Supply Chain Performance Under Constrained Supply

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

Rationing mechanisms and inventory control-policy parameters for a divergent supply chain operating with lost sales and costs of review

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