An integrated production, inventory and transportation decision in a whole green manufacturing supply chain

This paper proposes model to integrate production, inventory and transportation decision in a whole green manufacturing supply chain. The integration includes reuse and remanufacturing of returned used products. The manufacturing supply chain consists of tier-2 and tier-1 suppliers, a manufacturer, distributors, retailers and a third party. The manufacturer dissembles used products into parts. Reusable parts are remanufactured and reused again in finished products. A mathematical model is developed to coordinate production, inventory and transportation decision which considers multiple products simultaneously with determination of number of transportation units needed to deliver the finished products subject to their own capacities. Solution methods for the model are proposed based on three types of coordination mechanisms, decentralised, semi-centralised and centralised decision processes. The model and solution methods are illustrated with two numerical examples and results and findings are discussed.Mr. Jonrinaldi would like to thank the Faculty of Engineering, Andalas University for supporting his research with Grant No. 007/PL/SPK/PNP/FT-Unand/2013

The integrated inventory model with the transportation cost and two-level trade credit in supply chain management

AbstractThis paper takes the transportation cost into account to develop the new supplier–retailer inventory model under the condition that both supplier and retailer have adopted the two-level trade credit policy. Moreover, this paper presents the integrated total profit per unit time Π(n,T) of two decision variables n (the number of shipments from supplier to retailer per production run, a positive integer) and T (retailer’s replenishment cycle length). The main purpose of this paper not only derives the closed-form formulations for the optimal solution (n∗,T∗) of Π(n,T) but also simplifies the algorithm to determine the optimal solution described by Su et al. (2007) [36]. Finally, numerical examples are used to compare with those by Su et al. (2007) [36]