This paper aims to evaluate inventory cost of a Two-echelon serial supply chain system under vendor managed inventory program with stochastic demand, and examine the effect of environmental factors on the cost of overall system. For this purpose, we consider a two-echelon serial supply chain with a manufacturer and a retailer. Under Vendor managed inventory program, the decision on inventory ...

Most inventory researches assume that the production level can be fluctuated arbitrarily. However, in many firms, large fluctuation in production levels may be very costly. This paper addresses the coordinated pricing and inventory control problem in a smoothing production system, in which the production level is constrained between a maximum and a minimum level in each period and the price can...

The primary consequence of just-in-time (JIT) production is reduction of inventory. The associated benefit is (a) improved cashflow due to less financial resource tied up in inventory, and (b) less storage space required hence more productive plant area. Coupled with lean production and total quality management (TQM), it may also be possible to (c) improve worker productivity, (d) improve produ...

We model an isolated portion of a competitive supply chain as a M/M/1 make-tostock queue. The retailer carries finished goods inventory to service a Poisson demand process, and specifies a policy for replenishing his inventory from an upstream supplier. The supplier chooses the service rate, i.e., capacity, of his manufacturing facility, which behaves as a single-server queue with exponential s...

In recent years, companies have found that there are substantial benefit and competitive advantage from establishing a long-term sole-supplier relationship with supplier. In the integrated inventory model practices characterized by a sole-supplier base whose firm is located close to the buyer’s plant and makes frequent deliveries is considered a long-term partner with the buying company. The ch...

The present paper presents the algorithmic solution, based on an Ant System metaheuristic, of an industrial production–inventory problem in a steel continuous-casting plant. The model proposed is based on an objective function, the aim of which is to find the most profitable production schedule of the steel billets. Furthermore, the model takes into account the relevant parameters of the finite...

In this research, a cost/benefit model is developed for supporting investment strategies about inventory and preventive maintenance in an imperfect production system. The effect of such investments on the return is expressed as a function of measurable variables. Using this model, the decision maker can decide whether investments in inventory and preventive maintenance are necessary and how muc...

In this paper, we conduct a simulation study to evaluate the impact of using imperfect advance demand information (ADI) in a single stage production/inventory system. We mean by ADI the fact that the production system receives customer orders in advance of their due-dates. We consider four types of ADI: 1) Perfect ADI, 2) ADI with imperfect due-dates, 3) ADI with imperfect demand quantities and...

this paper presents an inventory model for deteriorating items in which shortages are allowed. it is assumed that the production rate is proportional to the demand rate and greater than demand rate. the inventory model is developed by considering four different circumstances. the optimal of the problem is obtained with the help of mathematica 7 software. numerical examples are given to illustra...