A Mathematical Method for Managing Inventories in a Dual Channel Supply Chain
The advent of e-commerce has prompted many manufacturers to redesign their traditional channel structure by engaging in direct sales. In this paper, we present a dual channel inventory model based on queuing theory in a manufacturer-retailer supply chain, consisting of a traditional retail channel a...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Iran University of Science & Technology
2008-12-01
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| Series: | International Journal of Industrial Engineering and Production Research |
| Subjects: | |
| Online Access: | http://ijiepr.iust.ac.ir/browse.php?a_code=A-10-1-4&slc_lang=en&sid=1 |
| _version_ | 1798045953881538560 |
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| author | H. Teimory H. Mirzahosseinian A. Kaboli |
| author_facet | H. Teimory H. Mirzahosseinian A. Kaboli |
| author_sort | H. Teimory |
| collection | DOAJ |
| description | The advent of e-commerce has prompted many manufacturers to redesign their traditional channel structure by engaging in direct sales. In this paper, we present a dual channel inventory model based on queuing theory in a manufacturer-retailer supply chain, consisting of a traditional retail channel and a direct channel which stocks are kept in both upper and lower echelon. The system receives stochastic demand from the both channel which each channel has an independent demand arrival rate. A lost-sales model which no backorder is allowed is supposed. The replenishment lead times are assumed independent exponential random variables for both warehouse and the retail store. Under the replenishment inventory policy, the inventory position is kept constant at a base-stock level. To analyze the chain performance, an objective function included holding and lost sales costs is defined. At the end, a proposed algorithm named, Best Neighborhood (BN) is used to find a good solution for inventory and the results are compared with Simulated Annealing (SA) solutions. |
| first_indexed | 2024-04-11T23:29:40Z |
| format | Article |
| id | doaj.art-0ec778b3b2ea499abecae3b11b81353b |
| institution | Directory Open Access Journal |
| issn | 2008-4889 2345-363X |
| language | English |
| last_indexed | 2024-04-11T23:29:40Z |
| publishDate | 2008-12-01 |
| publisher | Iran University of Science & Technology |
| record_format | Article |
| series | International Journal of Industrial Engineering and Production Research |
| spelling | doaj.art-0ec778b3b2ea499abecae3b11b81353b2022-12-22T03:57:11ZengIran University of Science & TechnologyInternational Journal of Industrial Engineering and Production Research2008-48892345-363X2008-12-011943137A Mathematical Method for Managing Inventories in a Dual Channel Supply ChainH. Teimory0H. Mirzahosseinian1A. Kaboli2 The advent of e-commerce has prompted many manufacturers to redesign their traditional channel structure by engaging in direct sales. In this paper, we present a dual channel inventory model based on queuing theory in a manufacturer-retailer supply chain, consisting of a traditional retail channel and a direct channel which stocks are kept in both upper and lower echelon. The system receives stochastic demand from the both channel which each channel has an independent demand arrival rate. A lost-sales model which no backorder is allowed is supposed. The replenishment lead times are assumed independent exponential random variables for both warehouse and the retail store. Under the replenishment inventory policy, the inventory position is kept constant at a base-stock level. To analyze the chain performance, an objective function included holding and lost sales costs is defined. At the end, a proposed algorithm named, Best Neighborhood (BN) is used to find a good solution for inventory and the results are compared with Simulated Annealing (SA) solutions.http://ijiepr.iust.ac.ir/browse.php?a_code=A-10-1-4&slc_lang=en&sid=1Supply chain management Direct channel Inventory Simulated annealing |
| spellingShingle | H. Teimory H. Mirzahosseinian A. Kaboli A Mathematical Method for Managing Inventories in a Dual Channel Supply Chain International Journal of Industrial Engineering and Production Research Supply chain management Direct channel Inventory Simulated annealing |
| title | A Mathematical Method for Managing Inventories in a Dual Channel Supply Chain |
| title_full | A Mathematical Method for Managing Inventories in a Dual Channel Supply Chain |
| title_fullStr | A Mathematical Method for Managing Inventories in a Dual Channel Supply Chain |
| title_full_unstemmed | A Mathematical Method for Managing Inventories in a Dual Channel Supply Chain |
| title_short | A Mathematical Method for Managing Inventories in a Dual Channel Supply Chain |
| title_sort | mathematical method for managing inventories in a dual channel supply chain |
| topic | Supply chain management Direct channel Inventory Simulated annealing |
| url | http://ijiepr.iust.ac.ir/browse.php?a_code=A-10-1-4&slc_lang=en&sid=1 |
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