Stackcelberg Game Inventory Model With Progressive Permissible Delay of Payment Scheme

Supplier has many schemes to motivate retailer to buy more and of them one is a progressive permissible delay of payment. Instead of analyst from the retailer side alone, in this chapter, we develop the inventory model of supplier and retailer. In reality, some suppliers and retailers cannot have collaboration and they try to optimize their own decision so we develop a Stackelberg Game model. Two models are developed wherein the first model supplier acts as the leader and in the second model, the retailer acts a leader. Since the models are complex, a hybrid Genetic Algorithm (GA) and Particle Swarm Optimization (PSO) is developed to solve the model. A numerical analysis and sensitivity analysis are conducted to get management insights of the model. The results show that a Stackelberg Game model for progressive permissible delay of payment is sensitive in varies values of the first and second delay interest rate if supplier acts as a leader. The retailer gets less inventory cost when he acts as a leader compared to when vendor acts a leader at high interest rate of the first and second delay period

The Application Of EDI: Empirical Evidence

Electronic Data Interchange (EDI) is one technology that has enabled B2B E-Commerce to speak to each other electronically in order to transmit information from sender to receiver in the format the receiver wants. B2B E-Commerce is no longer synonymous with EDI (Pathak & Baldwin, 2008). In UAE, EDI usage is in its early stage of implementation and research is highly tempted. This paper investigates the application of EDI in UAE by providing empirical evidence as to whether EDI application significantly and positively correlates to volume, cost, and profitability

Three-Echelon Inventory Model with Permissible Delay in Payments under Controllable Lead Time and Backorder Consideration

This paper proposes a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration to find out the suitable inventory policy to enhance profit of the supply chain. In today’s highly competitive market, the supply chain management has become a critical issue in both practice and academic and supply chain members have to cooperate with each other to bring more benefits. In addition, the inventory policy is a key factor to influence the performance of the supply chain. Therefore, in this paper, we develop a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration. Furthermore, the purpose of this paper is to maximize the joint expect total profit on inventory model and attempt to discuss the inventory policy under different conditions. Finally, with a numerical example provided here to illustrate the solution procedure, we may discover that decision-makers can control lead time and payment time to enhance the performance of the supply chain

Model Integrasi Sistem Produksi Multi Suplier Single Buyer Pada Sistem Just In Time

This research will discuss the integration of two suppliers single buyer in a Just In Time (JIT) environment. Supplier transform raw materials into semi-finished goods or components with a constant production rate. Buyer change of supplier components into a finished product with a constant production rate. Order quantity of the buyer are few innumber.If suppliers produce according to the buyerorder quantity, the expensive setup costs, then the supplier will produce the specified lot size to be sent multiple times to the buyer. The purpose of this research is to minimize the total joint inventory cost between suppliers and buyer, which includes setup cost and holding cost of the two supliers and order cost and holding cost of the buyer. The decision variables are theproduction lot and the number of deliveries in a single production lot both of supplier 1 and supplier 2. Numerical example and sensitivity analysis will be given in this research

Model Integrasi Sistem Produksi Multi Suplier Single Buyer Pada Sistem Just In Time

This research will discuss the integration of two suppliers single buyer in a Just In Time (JIT) environment. Supplier transform raw materials into semi-finished goods or components with a constant production rate. Buyer change of supplier components into a finished product with a constant production rate. Order quantity of the buyer are few innumber.If suppliers produce according to the buyerorder quantity, the expensive setup costs, then the supplier will produce the specified lot size to be sent multiple times to the buyer. The purpose of this research is to minimize the total joint inventory cost between suppliers and buyer, which includes setup cost and holding cost of the two supliers and order cost and holding cost of the buyer. The decision variables are theproduction lot and the number of deliveries in a single production lot both of supplier 1 and supplier 2. Numerical example and sensitivity analysis will be given in this research

Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain

The evolution of industrial development since the 18th century is now experiencing the fourth industrial revolution. The effect of the development has propagated into almost every sector of the industry. From inventory to the circular economy, the effectiveness of technology has been fruitful for industry. The recent trends in research, with new ideas and methodologies, are included in this book. Several new ideas and business strategies are developed in the area of the supply chain management, logistics, optimization, and forecasting for the improvement of the economy of the society and the environment. The proposed technologies and ideas are either novel or help modify several other new ideas. Different real life problems with different dimensions are discussed in the book so that readers may connect with the recent issues in society and industry. The collection of the articles provides a glimpse into the new research trends in technology, business, and the environment

A parameter-tuned genetic algorithm for vendor managed inventory model for a case single-vendor single-retailer with multi-product and multi-constraint

This paper develops a single-vendor single-retailer supply chain for multi-product. The proposed model is based on Vendor Managed Inventory (VMI) approach and vendor uses the retailer's data for better decision making. Number of orders and available capital are the constraints of the model. In this system, shortages are backordered; therefore, the vendor’s warehouse capacity is another limitation of the problem. After the model formulation, an Integer Nonlinear Programming problem will be provided; hence, a genetic algorithm has been used to solve the model. Consequently, order quantities, number of shipments received by a retailer and maximum backorder levels for products have been determined with regard to cost consideration. Finally, a numerical example is presented to describe the sufficiency of the proposed strategy with respect to parameter-tuned by response surface methodology (RSM).</p

Optimal production and delivery scheduling models for a supply chain system of deteriorating items

The market is varying from minute to minute nowadays. Increase cooperation and pursue the optimal interest of the integrated supply chain become a more effective way than act alone in the competition. In this research, an integrated inventory policy between singleproducer and multi-buyer is developed and two inventory models are built. The first model extends the research of Lin and Lin (2007) by changing the single-buyer system to the multibuyers one. Both backorder of buyers and deteriorating items of each party (producer’s level, buyers’ level, and during transport) are considered herein. The second model is based on the research of Woo et al.(2001) and Model 1 by takes raw material cost and remanufacturing proceeds into account additional. In both model, the producer and buyers collaboratively work at minimizing their total operation cost and the problems are solved under an assumption of equal replenishments and production cycles. The algorithms to find the optimal solutions are given, and numerical examples are presented. Sensitivity for systems parameters is also analyzed and all calculations are completed by software Matlab and Maple

Modelling of Coordinating Production and Inventory Cycles in A Manufacturing Supply Chain Involving Reverse Logistics

In today’s global and competitive markets selling products at competitive prices, coordination of supply chain configuration, and environmental and ecological consciousness and responsibility become important issues for all companies around the world. The price of products is affected by costs, one of which is inventory cost. Inventory does not give any added value to products but must be kept in order to fulfill the customer demand in time. Therefore, this cost must be kept at the minimum level. In order to reduce the amount of inventory across a supply chain, coordination of decisions among all players in the chain is necessary. Coordination is needed not only for a two-level supply chain involving a manufacturer and its customers, but also for a complex supply chain of multiple tiers involving many players. With increasing attention being placed to environmental and ecological consciousness and responsibility, companies are keen to have a reverse supply chain where used products are collected and usable components remanufactured and reused in production to minimize negative impacts on the environment, adding further complexity to decision making across a supply chain. To deal with the above issues, this thesis proposes and develops the mathematical models and solution methods for coordinating the production inventory system in a complex manufacturing supply chain involving reverse logistics and multiple products. The supply chain consists of tier-2 suppliers for raw materials, tier-1 suppliers for parts, a manufacturer who manufactures and assembles parts into finished products, distributors, retailers and a third party who collects the used products and returns usable parts to the system. The models consider a limited contract period among all players, capacity constraints in transportation units and stochastic demand. The solution methods for solving the models are proposed based on decentralized, semi-centralized and centralized decision making processes. Numerical examples are used by adopting data from the literature to demonstrate, test, analyse and discuss the models. The results show that centralised decision making process is the best way to coordinate all players in the supply chain which minimise total cost of the supply chain as a whole. The results also show that the selection of the length of limited horizon/ contract period will be one of the main factors which will determine the type of coordination (decentralised, centralised or semi-centralised) among all players in the supply chain. We also found that the models developed can be viewed as generalised models for multi-level supply chain by examining the models using systems of different tiers from the literature. We conclude that the models are insensitive to changes of input parameters since percentage changes of the supply chain’s total cost are less than percentage changes of input parameters for the scenarios studied