A coordination system for seasonal demand problems in the supply chain

Abstract This article considers a single product coordination system using a periodic review policy, participants of the system including a supplier and one or more heterogeneous buyers over a discrete time planning horizon in a manufacturing supply chain. In the coordination system, the demand of buyer in each period is deterministic, the supplier replenishes all the buyers, and all participants agree to plan replenishment to minimize total system costs. To achieve the objective of the coordination system, we make use of small lot sizing and frequent delivery policies (JIT philosophy) to transport inventory between supplier and buyers. Moreover, demand variations of buyers are allowed in the coordination system to suit real-world situations, especially for hi-tech industries. Furthermore, according to the mechanisms of minimizing the total relevant costs, the proposed method can obtain the optimal number of deliveries, shipping points and shipping quantities in each order for all participants in the coordination system.

[1]  Everette S. Gardner,et al.  Seasonal adjustment of inventory demand series: a case study , 2002 .

[2]  Lu Lu.  A one-vendor multi-buyer integrated inventory model , 1995 .

[3]  Christopher S. Tang,et al.  The Value of Information Sharing in a Two-Level Supply Chain , 2000 .

[4]  James P. Monahan.  A Quantity Discount Pricing Model to Increase Vendor Profits , 1984 .

[5]  S. Goyal,et al.  Integrated inventory models: The buyer-vendor coordination , 1989 .

[6]  M. Dada,et al.  Pricing policies for quantity discounts , 1987 .

[7]  Kamran Moinzadeh,et al.  Coordinated Replenishment Strategies in Inventory/Distribution Systems , 2007, Manag. Sci..

[8]  Suresh Kumar Goyal,et al.  An integrated inventory model for a single supplier-single customer problem , 1977 .

[9]  Jayashankar M. Swaminathan,et al.  A Coordinated Production Planning Model with Capacity Expansion and Inventory Management , 2001, Manag. Sci..

[10]  Ajay K Mishra,et al.  Selective discount for supplier-buyer coordination using common replenishment epochs , 2004, Eur. J. Oper. Res..

[11]  J. K. Lenstra,et al.  Deterministic Production Planning: Algorithms and Complexity , 1980 .

[12]  Derek A. Atkins,et al.  Periodic Versus Can-Order Policies for Coordinated Multi-Item Inventory Systems , 1988 .

[13]  Jatinder N. D. Gupta,et al.  OR Practice - Determining Lot Sizes and Resource Requirements: A Review , 1987, Oper. Res..

[14]  Lawrence M. Wein,et al.  Heavy Traffic Analysis of the Dynamic Stochastic Inventory-Routing Problem , 2015, Transp. Sci..

[15]  Maw-Sheng Chern,et al.  Deterministic lot-size inventory models with shortages and deterioration for fluctuating demand , 1999, Oper. Res. Lett..

[16]  Daesung Ha,et al.  A JIT lot-splitting model for supply chain management: Enhancing buyer–supplier linkage , 2003 .

[17]  K. Tan,et al.  Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance , 2005 .

[18]  R. C. Baker,et al.  A multi-phase mathematical programming approach for effective supply chain design , 2002, Eur. J. Oper. Res..

[19]  Bhaba R. Sarker,et al.  Determining manufacturing batch sizes for a lumpy delivery system with trend demand , 2002 .

[20]  John N. Pearson,et al.  Jit Manufacturing: a Survey of Implementations in Small and Large U.S. Manufacturers , 1999 .

[21]  Seung-Lae Kim,et al.  Implementation of JIT purchasing: An integrated approach , 1997 .

[22]  Prafulla Joglekar.  Note-Comments on A Quantity Discount Pricing Model to Increase Vendor Profits , 1988 .

[23]  Ching-Ter Chang,et al.  An efficient linearization approach for mixed-integer problems , 2000, Eur. J. Oper. Res..

[24]  R. Ganeshan.  Managing supply chain inventories: A multiple retailer, one warehouse, multiple supplier model , 1999 .

[25]  M. J. Rosenblatt,et al.  A generalized quantity discount pricing model to increase supplier's profits , 1986 .

[26]  Jatinder N. D. Gupta,et al.  Determining lot sizes and resource requirements: A review , 1987 .

[27]  A. Banerjee.  A JOINT ECONOMIC-LOT-SIZE MODEL FOR PURCHASER AND VENDOR , 1986 .

[28]  Hau L. Lee,et al.  The Inventory Benefit of Shipment Coordination and Stock Rebalancing in a Supply Chain , 2002, Manag. Sci..

[29]  Madhav V. Rajan,et al.  Cost Accounting: A Managerial Emphasis , 1972 .

[30]  María Analía Rodríguez,et al.  Inventory and delivery optimization under seasonal demand in the supply chain , 2010, Comput. Chem. Eng..