Research Article | OPEN ACCESS
Mathematical Modeling and Algebraic Technique for Resolving a Single-Producer Multi-Retailer Integrated Inventory System with Scrap
1Yuan-Shyi Peter Chiu, 1Chien-Hua Lee, 2Nong Pan, 2Singa Wang Chiu
1Department of Industrial Engineering and Management
2Department of Business Administration, Chaoyang University of Technology, Taichung 413, Taiwan
Research Journal of Applied Sciences, Engineering and Technology 2013 4:1413-1419
Received: July 13, 2012 | Accepted: August 15, 2012 | Published: February 01, 2013
Abstract
This study uses mathematical modeling along with an algebraic technique to resolve the production-distribution policy for a single-producer multi-retailer integrated inventory system with scrap in production. We assume that a product is manufactured through an imperfect production process where all nonconforming items will be picked up and scrapped in each production cycle. After the entire lot is quality assured, multiple shipments will be delivered synchronously to m different retailers in each cycle. The objective is to determine the optimal replenishment lot size and optimal number of shipments that minimizes total expected costs for such a specific supply chains system. Conventional method is by the use of differential calculus on system cost function to derive the optimal policy (Chiu et al., 2012c), whereas the proposed algebraic approach is a straightforward method that enables practitioners who may not have sufficient knowledge of calculus to understand and manage more effectively the real-life systems.
Keywords:
Algebraic approach, inventory, multiple retailers, multiple shipments, production lot size, scrap, supply chains,
Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
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ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
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