Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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An Integrated Inventory Model for a Three-Layer Supply Chain with Multiple Items

3단계 공급사슬에서 다완제품의 통합재고모형에 관한 연구

  • Kim, Dae-Hong (Department of Industrial and Management Engineering, Hansung University)
  • 김대홍 (한성대학교 산업경영공학과)
  • Received : 2014.08.05
  • Accepted : 2014.12.01
  • Published : 2014.12.31
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Abstract

In this paper, we investigate an inventory and production system in a three-layer supply chain system involving a single supplier, single manufacturer and multiple retailers. Earlier study in this type of supply chain only consider a single raw material in order to produce single item, but we consider raw materials in order to produce multiple items. It is assumed that the cycle time at each stage is an integer multiple of the adjacent downstream stage. We develop an iterative solution procedure to find the order quantity for the multiple items and raw materials that minimizes the supply chain-wide total cost per unit time of the supplier and manufacturer's raw materials ordering and holding, setup and finished items holding, the retailer's ordering and inventory holding. Numerical examples are presented to show that the proposed heuristic gives good performance.

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References

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