Integrated planning problem in supply chains with time-varying delivery

We consider a serial supply chain consisting of a raw material supplier, a manufacturer, a distribution centre and a retailer in the presence of time-varying delivery between manufacturer facility and the retailer warehouse. Delivery time functions are developed based on practical data analysis and the cost models for both linear and non-linear delivery time functions are derived. Analytic solution for system with linear delivery times is derived and a search algorithm for system with non-linear delivery times is established. Finally, sensitivity analysis is made to help decision makers achieve a lower total cost in practice.

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