A continuous review inventory model with order expediting

Heras, Alfonso Durán; Gutiérrez, Gil; Zequeira, Rómulo I.

doi:10.1016/s0925-5273(03)00100-2

Cited by 35 publications

(19 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…They adopted the artifice of the so-called "expediting factor" , which is a constant propor-tion between two random variables-the expedited lead-time and the regular lead-time, as a decision variable to moderate the lead-time length within a continuous review (Q, r) model, and characterized the optimal (Q, r, ) policy. In Duran et al (2004) supply lead-time is modeled as consisting of two stages, with the first one being deterministic and the second one taking one of two values. At the completion time of the first stage, if the inventory position is below some threshold level, the firm has the option to expedite the regular order as a whole (no partial expediting).…”

Section: Literature Reviewmentioning

confidence: 99%

On Optimal Expediting Policy for Supply Systems with Uncertain Lead‐Times

Kouvelis

Tang

2012

Production and Operations Management

View full text Add to dashboard Cite

We examine the role of expediting in dealing with lead‐time uncertainties associated with global supply chains of “functional products” (high volume, low demand uncertainty goods). In our developed stylized model, a retailer sources from a supplier with uncertain lead‐time to meet his stable and known demand, and the supply lead‐time is composed of two random duration stages. At the completion time of the first stage, the retailer has the option to expedite a portion of the replenishment order via an alternative faster supply mode. We characterize the optimal expediting policy in terms of if and how much of the order to expedite and explore comparative statics on the optimal policy to better understand the effects of changes in the cost parameters and lead‐time properties. We also study how the expediting option affects the retailer's decisions on the replenishment order (time and size of order placement). We observe that with the expediting option the retailer places larger orders closer to the start of the selling season, thus having this option serve as a substitute for the safety lead‐time and allowing him to take increased advantages of economies of scale. Finally we extend the basic model by looking at correlated lead‐time stages and more than two random lead‐time stages.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

On Optimal Expediting Policy for Supply Systems with Uncertain Lead‐Times

Kouvelis

Tang

2012

Production and Operations Management

View full text Add to dashboard Cite

show abstract

“…At most one outstanding order is a common assumption in the literature (e.g., Hadley and Whitin 1963;Archibald 1981, Moinzadeh andNahmias 1988 andDuran et al 2004). Many papers often use (s, S) policy without establishing its optimality under this assumption.…”

Section: Introductionmentioning

confidence: 99%

“…They suggest a heuristic policy that is a generalization of a (Q, r) policy according to which an order of size Q is placed when the inventory position hits r. A similar problem with only one supply mode is studied by Hadley and Whitin (1963) and is shown to have an optimal (Q, r) policy. Another similar problem is that of Duran et al (2004) who analyze the option of expediting the delivery of an outstanding order at an additional cost. Table 1 compares this paper with the literature.…”

Section: Introductionmentioning

confidence: 99%

Inventory control with an order-time constraint: optimality, uniqueness and significance

2010

View full text Add to dashboard Cite

This paper analyzes a stochastic inventory problem with an order-time constraint that restricts the times at which a manufacturer places new orders to a supplier. This constraint stems from the limited upstream capacity in a supply chain, such as production capacity at a supplier or transportation capacity between a supplier and a manufacturer. Consideration of limited upstream capacity extends the classical inventory literature that unrealistically assumes infinite supplier/transporter capacity. But this consideration increases the complexity of the problem. We study the constraint under a Poisson demand process and allow for a fixed ordering cost. In presence of the constraint, we establish the optimality of an (s, S) policy under both the discounted and average cost objectives. Under the average cost objective, we show the uniqueness of the order-up-to level S. We numerically compare our model with the classical unconstrained model. We report significant savings in costs that can be achieved by using our model when the order time is constrained.

show abstract

“…The majority of the papers in this area deal with either the concept of emergency supply modes [3,4], or the concept of expedited supply modes [5]. Along with this idea, coordination and information sharing between members in the supply chain have recently become other key issues.…”

Section: Introductionmentioning

confidence: 99%

Multi-objective Analysis of Periodic Review Inventory Problem with Coordinated Replenishment in Two-echelon Supply Chain System through Differential Evolution

Fatrias

Shimizu

2010

JAMDSM

View full text Add to dashboard Cite

This paper studies a multi-objective analysis of periodic review inventory problem in two-echelon supply chain system. Thereat, three strategies of replenishment are proposed to manage inventory in efficient way while trying to improve the system performance by simultaneously minimizing total cost and loss rate of the supply chain. Associated with the problem, it is apparent that preventing loss rate will increase total cost and vice versa. Then between these conflicting goals, we can examine the profitable situation in which all members in the chain can achieve proportional satisfaction. To concern with the finally formulated problem, we applied multi-objective differential evolution (MODE) after giving the original method a suitable procedure for the resulting problem. Through numerical experiments for a case study, we show that the intimate coordination strategy between manufacturer and retailer become more effective as increase in demand uncertainty.

show abstract

A continuous review inventory model with order expediting

Cited by 35 publications

References 10 publications

On Optimal Expediting Policy for Supply Systems with Uncertain Lead‐Times

On Optimal Expediting Policy for Supply Systems with Uncertain Lead‐Times

Inventory control with an order-time constraint: optimality, uniqueness and significance

Multi-objective Analysis of Periodic Review Inventory Problem with Coordinated Replenishment in Two-echelon Supply Chain System through Differential Evolution

Contact Info

Product

Resources

About