An integrated inventory model for single-vendor single-buyer system with freight rate discount and stochastic demand

Jauhari, Wakhid Ahmad; Fitriyani, Ayudia; Aisyati, Azizah

doi:10.1504/ijor.2016.074757

Cited by 14 publications

(7 citation statements)

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“…Hence, we note here, that the solutions obtained by the proposed procedure cannot be claimed as a global optimal solution and the proposed procedure is only guaranteed to converge to local optimal solutions. Nevertheless, many scholars, including Ben-Daya and Hariga (2004), Glock (2012b), Jauhari et al (2016bJauhari et al ( , 2017, have used similar procedures to find the solutions in stochastic JELPs. It is obvious that the parameters T, P, and S are dependent of each other.…”

Section: Solution Methodologymentioning

confidence: 99%

A stochastic periodic review inventory model for vendor–buyer system with setup cost reduction and service–level constraint

Jauhari

Saga

2017

Production & Manufacturing Research

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This paper presents a joint economic lot-sizing problem under stochastic demand for a vendor-buyer system by synchronizing ordering and production cycles. The buyer manages its inventory periodically using a periodic review policy. The average demand and the buyer's ordering cost are assumed to be fuzzy. The vendor's production process is imperfect and the buyer's inspection process is also imperfect. The vendor has opportunity to make an investment to reduce the setup cost. Since it is often difficult to calculate the shortage cost in inventory model, a service-level constraint corresponding to the buyer is considered in the mathematical model. The objective of the model is to simultaneously optimize the review period, production rate, setup cost, and the number of deliveries, such that minimize the joint total cost. We suggest an iterative procedure to find the optimal values of decision variables. A numerical example and a sensitivity analysis are given to show the application of the model and to investigate the effect of the changes in key parameters on the behavior of the proposed model.

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Section: Solution Methodologymentioning

confidence: 99%

A stochastic periodic review inventory model for vendor–buyer system with setup cost reduction and service–level constraint

Jauhari

Saga

2017

Production & Manufacturing Research

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“…They presented a deterministic model and proposed a heuristic algorithm to solve the model. Jauhari et al [37] investigated on a single-vendor single-buyer problem with considering freight rate discount under stochastic demand but buyer's space limitation is not considered in their study. Hemmati et al [30] proposed a CS with considering price-and stock-dependent demand with a deteriorating item for the problem of single-vendor single-buyer.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimizing vendor-managed inventory systems with limited storage capacity and partial backordering under stochastic demand

2020

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A supply chain member's coordination is a challenging issue and a key factor of success in business markets. In vendor-managed inventory systems, the vendor makes replenishment decisions at the site of buyer by which the supply chain can be coordinated more efficiently. Two integrated vendor managed inventory systems under continuous review and periodic review replenishment policies are developed considering partial backordering and limited storage capacity at the buyer's side. Furthermore, traditional retailer managed inventory systems under the same settings are developed to compare against the integrated systems. Efficient algorithms are presented to derive the optimal values of decision variables. Finally, numerical experiments and comprehensive sensitivity analysis are used to show the applicability and efficiency of the proposed VMI systems.Mathematics Subject Classification. 90B05.

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“…Jauhari (2014) investigated the quantity discount and partial backorder in stochastic vendor-buyer inventory model under variable lead time and partial backorder. Jauhari et al (2016) extended the model by considering freight cost in the supply chain system with two discount schemes, namely: all-units quantity discount and incremental quantity discount.…”

Section: Literature Reviewmentioning

confidence: 99%

Integrated inventory system with freight costs and two types of quantity discounts

Wangsa

Wee

2020

IJLSM

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In this paper, we investigate an integrated inventory model for single supplier-buyer considering stochastic demand. We consider two quantity discounts with freight environment. The objective is to minimise the integrated total cost incurred by the supplier and buyer. Freight costs are the function of shipping weight and distance with two transportation modes: truckload (TL) and less-than-truckload (LTL) shipments. We develop two optimal models considering all-units quantity discount and incremental quantity discount. The study shows how freight costs and the two discount policies affect the total cost of the supplier and the buyer. Numerical examples are used to illustrate of two models.

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An integrated inventory model for single-vendor single-buyer system with freight rate discount and stochastic demand

Cited by 14 publications

References 0 publications

A stochastic periodic review inventory model for vendor–buyer system with setup cost reduction and service–level constraint

A stochastic periodic review inventory model for vendor–buyer system with setup cost reduction and service–level constraint

Optimizing vendor-managed inventory systems with limited storage capacity and partial backordering under stochastic demand

Integrated inventory system with freight costs and two types of quantity discounts

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