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 ...

The efficient management of a distribution system requires coordination between transportation planning and inventory control. Small and frequent shipments can reduce inventory levels while maintaining high customer service levels, but they increase unit transportation costs due to inappropriate utilization of the vehicles and more handling costs. On the other hand shipment consolidation polici...

inventory control is one of the most important issues in supply chain management. in this paper, a three-echelon production, distribution, inventory system composed of one producer, a set of wholesalers and retailers is considered. costumers' demands can be approximated by a normal distribution and the inventory policy is a kind of continuous review (r, q). in this paper, a model based on ...

high congestion of returned product at remanufacturing facility causes substantial delays and consequently remarketing value losses for time-sensitive and high-tech products with short life cycles, such as electronic equipments. at the remanufacturing site the returned product are inspected and classified according to their quality and processing time in one of the two classes: class 1 being ad...

Product take-back and recovery activities have grown in recent times as a consequence of stringent government regulations and increased customer awareness of environmental pollution. Inventory management in the context of product returns has drawn the attention of many researchers. However, the inherent complexity of the system with uncertain returns makes the analysis of the system extremely d...

The theory on multi-echelon production/inventory systems is a core theory within supply chain management. It provides useful insights for design of supply chains and may be used for tactical and operational planning decisions. The multi-echelon theory started with the seminal paper of Clark and Scarf in 1960. In this tutorial, we describe for which systems optimal policies are known, which key ...

This paper demonstrates optimal policies for capacitated serial multiechelon production/inventory systems. Extending the Clark and Scarf (1960) model to include installations with production capacity limits, we demonstrate that a modified echelon base-stock policy is optimal in a two-stage system when there is a smaller capacity at the downstream facility. This is shown by decomposing the dynam...

This paper deals with an inventory system with one central warehouse and a number of identical retailers. We consider perishable-on-theshelf items; that is, all items have a fixed shelf life and start to age on their arrival at the retailers. Each retailer faces Poisson demand and employs (1, T) inventory policy. Although demand not met at a retailer is lost, the unsatisfied demand at the centr...