Revisiting "integrating a cost-reduction shipment plan into a single-producer multi-retailer system with rework" using an alternative approach

Abstract

This study revisits a single-producer multi-retailer system with a cost-reduction shipment plan and rework [1] using an alternative approach. Unlike the conventional method that uses differential calculus on system cost function to prove its convexity and derive the optimal production-shipment policy, we proposed an algebraic solution procedure to the problem. Such a straightforward approach may enable the practitioners with little knowledge of calculus to understand real supply chain systems more easily