Optimal inventory replenishment and shipment policies in a three-echelon supply chain for growing items with expiration dates

Sebatjane, Makoena; Adetunji, Olufemi

doi:10.1007/s12597-022-00572-6

Cited by 9 publications

(6 citation statements)

References 31 publications

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“…The optimal slaughter time cannot be obtained by a closed-form method from Equation (9), so a numerical method is used to solve it. Therefore, by substituting the order size value from Equation (11) into Equation ( 9), then the optimal slaughter age is obtained using the Newton-Raphson method by applying the following solution procedure:…”

Section: Egq With No Discountmentioning

confidence: 99%

“…Recently, Gharaei and Almehdawe [10] applied the uniform distribution as the probability density function of survival and mortality over the growth period. Likewise, Sebatjane and Adetunji [11] proposed an EGQ model with the mortality function as a fraction of total items that do not survive the growing period. Another important extension to the EGQ models is the number of poor-quality items produced during the growing period that should be identified and removed.…”

Section: Introductionmentioning

confidence: 99%

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Economic Growing Quantity Model with Mortality in Newborn Items and Inhibition Cost of Ammonia Production under All-Units Discount Policy

Nobil

Cárdenas–Barrón

et al. 2023

Sustainability

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The amount of global ammonia (NH3) emissions is growing continuously, similar to the damage to the environment, particularly humans and animals, caused by those emissions. Various problems derived from pollution by ammonia emissions have attracted increasing attention in recent years. In particular, accumulation of ammonia in poultry farms is a concern for the poultry industry as it can lead to possible damage due to reduced bird performance, damage to the respiratory tract and skin of birds, and thus loss of customers. As birds age, ammonia production increases due to factors such as feeding and mobility, requiring the application of solutions to reduce it such as the use of fans, feed supplements, and temperature adjustments to improve bird health. These solutions impose additional costs on poultry farms to combat ammonia emissions. This study presents a general economic growing quantity (EGQ) model that includes the cost of inhibition of ammonia production during the growing period. In addition, the model is formulated under an all-units discount policy, where the price of newborn items is related to the size of the order purchased from the supplier. Furthermore, the model assumed that some newborn items are dead when the lot is received because of stress experiences and incidents during the catching, loading, transportation, and unloading. Finally, two versions of the proposed general EGQ model are presented: EGQ with no discount and EGQ with known slaughter age.

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Section: Egq With No Discountmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Economic Growing Quantity Model with Mortality in Newborn Items and Inhibition Cost of Ammonia Production under All-Units Discount Policy

Nobil

Cárdenas–Barrón

et al. 2023

Sustainability

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show abstract

“…[10] Khalilpourazari & Pasandiddeh [11] Malekitabar et al [12] Nobil & Taleizadeh [13] Eveline & Ritha [14] Garza Cabello [15] Sebatjane & Adetunji [16] Sebatjane & Adetunji [17] Gharaei & Almehddawe [18] Hidayat et al [19] Mokhtari et al [20] Nishandhi [21] Pourmohammad-Zia & Karimi [22] Afzal & Alfares [23] Sebatjane [24] Rezaei [2] Sebatjane & Adetunji [42] Sebatjane [43] Abbasi et al [44] Sharma & Mittal [45] Sharma & Saraswat [46] De la Cruz-Márquez et al…”

Section: ] Gharaei and Almehdawementioning

confidence: 99%

“…The model allows for shortages, which are completely backordered if they occur. Sebatjane [24] presented more realistic models to manage growing inventory items in multi-tier supply chain environments. Sebatjane and Adetunji [25] created an integrated inventory management model designed for a three-echelon supply chain handling growing items.…”

Section: ] Gharaei and Almehdawementioning

confidence: 99%

An Inventory Model for Growing Items When the Demand Is Price Sensitive with Imperfect Quality, Inspection Errors, Carbon Emissions, and Planned Backorders

De-la-Cruz-Márquez,

Cárdenas-Barrón,

Porter

et al. 2023

Mathematics

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Inventory models that consider environmental and quality concerns have received some attention in the literature, yet no model developed to date has investigated these features in combination with growing items. Therefore, there is a need to incorporate these three relevant aspects together in a single inventory model to support decisions, compare results, and obtain new knowledge for the complexities of the real world. Moreover, current sustainable inventory management practices aim at mitigating the ecological consequences of an industry while preserving its profitability. The present study aligns with this perspective and introduces an economic order quantity (EOQ) model that considers imperfect quality while also accounting for sustainability principles. More specifically, the model addresses growing items, which have a demand dependent on selling price and the unique ability to grow while being stored in inventory. Additionally, the analysis acknowledges the possibility of classification errors during the inspection process, encompassing both Type-I and Type-II inspection errors. Furthermore, the model permits shortages and ensures that any shortage is completely fulfilled through backorders. The optimization model produces an optimal solution for the proposed model that is derived by optimizing three decision variables: order quantity of newborn items, backordering quantity, and the selling price of perfect items. A numerical example is presented, and the results are discussed. Finally, a sensitivity analysis on variations of parameters such as Type-I and Type-II errors shows that it is advantageous to reduce the percentage of good items that are misclassified as defective (i.e., Type-I error). As there is a direct impact of such errors on sales, it is imperative to address and mitigate this issue. When defective items are mistakenly classified as good Type-II errors, adverse consequences ensue, including a heightened rate of product returns. This, in turn, results in additional costs for the company, such as penalties and diminished customer confidence. Hence, the findings clearly suggest that the presence of Type-I and Type-II errors has a negative effect on the ordering policy and on the total expected profit. Moreover, this work provides a model that can be used with any growing item (including plants), so the decision-maker has the opportunity to analyze a wide variety of scenarios.

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“…The model considers various factors such as the selling price, reference price, freshness, and the level of stock displayed, all of which influence the demand for the products. Sebatjane and Adetunji (2022) also considered a coordinated multi-echelon system for a growing item inventory system with product expiration. Alakan et al (2019) proposed a three-level supply chain model to analyse the dynamics and interactions within an interconnected supply chain structure under finite production rates and stock dependent demand.…”

Section: Introductionmentioning

confidence: 99%

A Lot Sizing Model for a Deteriorating Product with Shifting Production Rates, Freshness, Price, and Stock-Dependent Demand with Price Discounting

Tshinangi,

Adetunji,

Yadavalli

2024

Int. j. math. eng. manag. sci.

Self Cite

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Many production systems need to be able to change the rate at which they manufacture products for various reasons, hence, the need to find the optimal lot size under these multiple levels of production. This research addresses the need for optimizing inventory in a system with a shifting production rate and other challenging product characteristics such as product deterioration with limited life span, and product demand that is dependent on the stock level, the state of freshness of the product, and the selling price. The product also needs to be discounted as it gets close to the expiry date in order to boost demand and prevent wastage beyond its life span. Our objective is to maximize profit by determining the optimal selling price and inventory cycle time by deriving the relevant equations for these decision variables. The Newton-Raphson method was used to numerically solve for the optimal values of these variables. Sensitivity analyses were performed to derive useful insights for managerial decision-making.

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Optimal inventory replenishment and shipment policies in a three-echelon supply chain for growing items with expiration dates

Cited by 9 publications

References 31 publications

Economic Growing Quantity Model with Mortality in Newborn Items and Inhibition Cost of Ammonia Production under All-Units Discount Policy

Economic Growing Quantity Model with Mortality in Newborn Items and Inhibition Cost of Ammonia Production under All-Units Discount Policy

An Inventory Model for Growing Items When the Demand Is Price Sensitive with Imperfect Quality, Inspection Errors, Carbon Emissions, and Planned Backorders

A Lot Sizing Model for a Deteriorating Product with Shifting Production Rates, Freshness, Price, and Stock-Dependent Demand with Price Discounting

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