Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Coordination of Component Production and Inventory Rationing for a Two-Stage Supply Chain with a VMI Type of Supply Contract

적시 부품 공급 계약을 갖는 두 단계 공급망에서 부품 생산과 재고 분배의 통합적 구현

  • 김은갑 (이화여자대학교 경영대학)
  • Received : 2012.01.17
  • Accepted : 2012.04.20
  • Published : 2012.06.30
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Abstract

This paper considers a supply chain consisting of a component manufacturer and a product manufacturer. The component manufacturer provides components for the product manufacturer based on a vendor-managed inventory type of supply contract, and also faces demands from the market with the option of to accept or reject each incoming demand. Using the Markov decision process model, we examine the structure of the optimal production control and inventory rationing policy. Two types of heuristics are presented. One is the fixed-buffer policy and the other uses two linear functions. We implement a computational study and present managerial insights based on the observations.

Keywords

Acknowledgement

Supported by : 한국연구재단

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