Modified Controllable Lead Time Model with Stochastic Demand and Batch Shipment Policy
نویسندگان
چکیده
This study investigates the single-vendor single-buyer integrated production inventory models with controllable lead time. The lead time demand is stochastic and shortage during the lead time is permitted. The buyer orders a lot of size Q and the vendor manufactures mQ with a finite production rate P at one set-up but ships in quantity Q to the buyer over m times. Most researchers do not take this assumption into account while determining the crashing cost. In this study, a modified model is proposed under the practical fact that the production is continuous during a production cycle in which the crashing set-up cost is charged only once. Numerical examples are presented to illustrate the procedures and results of the proposed algorithm. The modified model is shown to provide lower total costs and shorter lead time.
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