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An Integrated Inventory Model for Multi-Product and its Raw Materials in Just-In-Time Purchasing  

Kim, Dae-Hong (Department of Industrial Systems Engineering, Hansung University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.31, no.1, 2008 , pp. 49-58 More about this Journal
Abstract
In this paper, we consider an inventory system where a single supplier purchases and processes raw materials into finished goods in order to deliver finished goods to a single buyer for effective implementation of Just-In-Time Purchasing. An integrated multi-item lot-splitting model of facilitating multiple shipments in small lots between buyer and supplier is developed in a JIT Purchasing environment. Also, an iterative solution procedure is developed to find the order quantity for finished goods and raw materials, and number of shipments between buyer and supplier. We show by numerical example that when the integrated policy is adopted by both buyer and supplier in a cooperative manner, both parties can benefit.
Keywords
Supply Chain Management; JIT Purchasing; Integrated Inventory System;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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