A dynamic model for serial supply chain with periodic delivery policy

A three-echelon, dynamic lot-sizing model is presented for computing the parameters of a serial supply chain, which consists of integrated material replenishment, production at a capacity constraint, and outbound dispatching with a periodic delivery policy. The model is applicable in the general context of a three-echelon model with capacity constraint at the middle echelon of the serial supply chain which was not considered in most of the literature. This paper addresses a number of structural properties of the model and proposes a polynomial-time algorithm for deriving the optimal solution of minimising the total system costs over the planning horizon. Examples are provided to describe the algorithm.

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