An Inventory Model for Deteriorating Items in a Supply Chain with System Dynamics Analysis

Lee, Ching‐Fang; Chung, Chien‐Ping

doi:10.1016/j.sbspro.2012.03.159

Cited by 23 publications

(13 citation statements)

References 10 publications

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“…Taleizadeh and Nematollahi [15] developed an inventory control model that investigates the e ects of time value of money and in ation on optimal ordering policy of deteriorating products. Lee and Chung [16] used system dynamics thinking to propose a new order system for deteriorating products and prepare a systematical simulation. Maity and Maiti [17] presented an optimum production and advertising policy for a multiproduct system with in ation and time discounting under di erent constraints.…”

Section: Introductionmentioning

confidence: 99%

An Integrated Pricing and Inventory Model for Deteriorating Products in a two stage supply chain under Replacement and Shortage

Teimoury

Kazemi²

2017

Scientia Iranica

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Abstract. In this paper, a two-stage supply chain, including a wholesaler and a retailer, is investigated, in which the retailer acts as a vendor and sells the products to the nal customers. This chain only produces a single deteriorating product with constant deteriorating rate. In this chain, demand is deterministic, and lead time for replenishment and replacement of retailer's stock is considered to be zero. The objective of this study is to maximize total chain's pro t by determining the optimal values of retailer's selling price (p) and order cycle length (T ). Since due to deterioration, a part of the initial stock is deteriorated, the retailer residuals recycle the deteriorated part and replace them with healthy product as needed instead. Two scenarios with and without shortage assumptions are developed. Finally, numerical examples are presented to show the applicability of the proposed models, and sensitivity analysis on some parameter's values is conducted.

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Section: Introductionmentioning

confidence: 99%

An Integrated Pricing and Inventory Model for Deteriorating Products in a two stage supply chain under Replacement and Shortage

Teimoury

Kazemi²

2017

Scientia Iranica

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“…Making a comparison between discrete event simulation (DES) and system dynamics (SD), they revealed that both DES and SD are good for the purpose of representing the different elements characterizing an SC. Actually, Lee and Chung (2012) used SD to understand and find possible representation and simulation scenarios of the inventory levels for the several players of a SC. Also, SD was used to represent the information sharing process in a SC (Feng, 2012).…”

Section: Managing Uncertainty In the Scmentioning

confidence: 99%

The role of uncertainty in supply chains under dynamic modeling

Fera¹,

Fruggiero²,

Lambiase³

et al. 2017

10.5267/j.ijiec

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The uncertainty in the supply chains (SCs) for manufacturing and services firms is going to be, over the coming decades, more important for the companies that are called to compete in a new globalized economy. Risky situations for manufacturing are considered in trying to individuate the optimal positioning of the order penetration point (OPP). It aims at defining the best level of information of the client's order going back through the several supply chain (SC) phases, i.e. engineering, procurement, production and distribution. This work aims at defining a system dynamics model to assess competitiveness coming from the positioning of the order in different SC locations. A Taguchi analysis has been implemented to create a decision map for identifying possible strategic decisions under different scenarios and with alternatives for order location in the SC levels. Centralized and decentralized strategies for SC integration are discussed. In the model proposed, the location of OPP is influenced by the demand variation, production time, stock-outs and stock amount. Results of this research are as follows: (i) customer-oriented strategies are preferable under high volatility of demand, (ii) production-focused strategies are suggested when the probability of stock-outs is high, (iii) no specific location is preferable if a centralized control architecture is implemented, (iv) centralization requires cooperation among partners to achieve the SC optimum point, (v) the producer must not prefer the OPP location at the Retailer level when the general strategy is focused on a decentralized approach.

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“…SD has been used to analyze the complexity of different types of supply chains [52,53]. For example, Kumar and Kumar [54] study the effects of the lack of suppliers in healthcare supply chains for rural communities, caused by their geographical location, Lee and Chung [55] assess the coordination among the links of perishable food supply chains, since it is critical to guarantee the freshness of theirs products. Sagardi et al [6] evaluate the feasibility of the biofuel supply chain in Mexico analyzing the ethanol production and three key variables were identified to develop this sector: the availability of raw materials, the production capacity, and the reduction of carbon dioxide emissions.…”

Section: Complex Supply Chains the Structure Of Supply Chainsmentioning

confidence: 99%

Assessing the Impact of a Vinasse Pilot Plant Scale-Up on the Key Processes of the Ethanol Supply Chain

Ramos-Hernández

Mota-López

Sánchez-Ramírez

et al. 2016

Mathematical Problems in Engineering

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One of the byproducts generated in the cane sugar production is molasses, which is used for ethanol distillation. However, one of the problems of distilleries is vinasse. Vinasse is highly water pollutant and is dumped untreated in lakes or rivers and damages the environment. The company FALA developed a pilot plant that uses vinasse to produce a type of livestock feed called MD60. In this paper, the impact of the pilot plant’s scale-up in the key processes of the company’s supply chain is analyzed. With the help of a sensitivity analysis, this study finds the values that would allow the company to improve its order fulfillment indicator and to increase profits, assuming an expected demand by the introduction of this new product into the market. The results show that (1) the pilot plant fulfills 32% of the orders, (2) according to the current vinasse storage capacity, it is possible to fulfill up to 77% of the orders by scaling up the pilot plant, (3) to satisfy 100% of the orders, it is necessary to use all the vinasse generated, and (4) the highest profit is reached by processing all the vinasse and by considering the upper sale price.

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An Inventory Model for Deteriorating Items in a Supply Chain with System Dynamics Analysis

Cited by 23 publications

References 10 publications

An Integrated Pricing and Inventory Model for Deteriorating Products in a two stage supply chain under Replacement and Shortage

An Integrated Pricing and Inventory Model for Deteriorating Products in a two stage supply chain under Replacement and Shortage

The role of uncertainty in supply chains under dynamic modeling

Assessing the Impact of a Vinasse Pilot Plant Scale-Up on the Key Processes of the Ethanol Supply Chain

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