Integrated Supply Chain for a Single Vendor and Multiple Buyers and Products with Crashing Lead Time
In this study, an integrated inventory model was developed among one vendor, multi buyers, and multi products. The total inventory cost to be minimized in this model is a combination of the vendor’s and the buyers’ total inventory costs. The total vendor inventory costs consist of setup costs an...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2020-07-01
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| Series: | International Journal of Technology |
| Subjects: | |
| Online Access: | https://ijtech.eng.ui.ac.id/article/view/3750 |
| Summary: | In
this study, an integrated inventory model was developed among one vendor, multi
buyers, and multi products. The total inventory cost to be minimized in this
model is a combination of the vendor’s and the buyers’ total inventory costs.
The total vendor inventory costs consist of setup costs and holding costs and
the total inventory cost of the buyer consists of ordering costs, holding
costs, stockout costs, and crashing lead time costs where the crashing lead
time cost is approximated with an exponential function. Three decision
variables will be calculated: the number of buyer orders, the lead time of each
buyer, and the frequency of vendor shipments to all buyers in one production
cycle. In this study, the optimal solution of each decision variable has been
developed and applied to a case to show the use of models for finding optimal
solutions. The sensitivity has also been performed to show the effects of some
factors on the decision variables. |
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| ISSN: | 2086-9614 2087-2100 |