Production and shipment lot sizing in a vendor–buyer supply chain with transportation cost

Ertoğral, Kadir; Darwish, Mohammed A.; Ben‐Daya, Mohamed

doi:10.1016/j.ejor.2005.10.036

Cited by 149 publications

(72 citation statements)

References 13 publications

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“…Early research in this area focused on the coordination of order and production cycles by assuming that the production and order quantities have to be equal, or by assuming that the supplier may produce an integer number of orders in a single production run (e.g., Goyal, 1977;Banerjee, 1986). Subsequently, researchers focused on managing transportation processes between the supplier and the buyer, for example by assuming that production lots may be split up into equaland/or unequal-sized shipments, or that some type of constraint on the shipments has to be considered (e.g., Agrawal and Raju, 1996;Hill, 1999;Ertogral et al, 2007;Glock, 2012a). Recent works on the JELS problem focused on the management of containers in supply chains (e.g., Kim et al, 2014;Glock and Kim, 2014), environmental issues (e.g., Jaber et al, 2014), or human learning in production (e.g., Khan et al, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

A joint economic lot size model with financial collaboration and uncertain investment opportunity

Marchi

Ries

Zanoni

et al. 2016

International Journal of Production Economics

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Establishing long-term relationships among the members of a supply chain has become necessary to enhance the supply chain's competitiveness in a globalized environment. Besides coordinating operational decisions, such as how much and when to produce or to order, the members of a supply chain may also share financial resources or act jointly on the capital market. This is important especially when companies have unequal access to capital, for example because they are located in countries with different economic conditions and banking policies and/or ratings. The joint financing of investments across the supply chain may thus ensure the stability of production and of the flow of products to the customers. In addition, it strengthens the established relationships among the supply chain members. This study takes up these issues and presents an integrated inventory model that considers investments jointly financed by the members of a supply chain. In particular, it considers a two-stage supply chain with a single vendor and a single buyer and assumes that the vendor has the option to invest in increasing its production rate. The buyer, however, is assumed to have better access to capital, and therefore has the option to give a credit to the vendor to invest in its productivity, which is beneficial for both parties. To consider uncertainties of the production improvement investments, a success probability for the investment is considered and modeled using a beta distribution.

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Section: Literature Reviewmentioning

confidence: 99%

A joint economic lot size model with financial collaboration and uncertain investment opportunity

Marchi

Ries

Zanoni

et al. 2016

International Journal of Production Economics

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“…Abad and Aggarwal (2005) involved transportation cost into inventory model and determining lotsize and pricing decision with downward sloping demand. Nie et al (2006) and Ertogral et al (2007) presented an integrated inventory model with transportation cost. Ben-Daya et al (2008) presented joint economic lot sizing models with different shipment policies.…”

Section: Direct Emissionmentioning

confidence: 99%

Greenhouse gas penalty and incentive policies for a joint economic lot size model with industrial and transport emissions

Wangsa¹

2017

10.5267/j.ijiec

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This paper presents a joint economic lot size model for a single manufacturer-a single buyer. The purposed model involves the greenhouse gas emission from industrial and transport sectors. We divide the emission into two types, namely the direct and indirect emissions. In this paper, we consider the Government's penalty and incentive policies to reduce the emission. We assume that the demand of the buyer is normally distributed and partially backordered. The objective is to minimize joint total cost incurred by a single manufacturer-a single buyer and involves the transportation costs of the freight forwarder. Transportation costs are the function of shipping weight, distance, fuel price and consumption with two transportation modes: truckload and lessthan-truckload shipments. Finally, an algorithm procedure is proposed to determine the optimal order quantity, safety factor, actual shipping weight, total emission and frequency of deliveries. Numerical examples and analyses are given to illustrate the results.

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“…Ertogral et al (2007) develop two new models that integrate the transportation cost explicitly in the single vendor single-buyer problem. The transportation cost was considered to be in an all-unit-discount format for the first model.…”

Section: Vendor-buyer Coordinationmentioning

confidence: 99%

Quantitative Models for Centralised Supply Chain Coordination

Jaber¹,

Zolfaghari²

2008

Supply Chain

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IntroductionA supply chain is defined as a network of facilities and distribution options that perform the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Managing such functions along the whole chain; that is, from the supplier's supplier to the customer's customer; requires a great deal of coordination among the players in the chain. The effectiveness of coordination in supply chains could be measured in two ways: reduction in total supply chain costs and enhanced coordination services provided to the end customer ⎯ and to all players in the supply chain. Inventory is the highest cost in a supply chain accounting for almost 50% of the total logistics costs. Integrating order quantities models among players in a supply chain is a method of achieving coordination. For coordination to be successful, incentive schemes must be adopted. The literature on supply chain coordination have proposed several incentive schemes for coordination; such as quantity discounts, permissible delay in payments, price discounts, volume discount, common replenishment periods. The available quantitative models in supply chain coordination consider up to four levels (i.e., tier-1 supplier, tier-2 supplier, manufacturer, and buyer), with the majority of studies investigating a two-level supply chain with varying assumptions (e.g., multiple buyers, stochastic demand, imperfect quality, etc). Coordination decisions in supply chains are either centralized or decentralized decision-making processes. A centralized decision making process assumes a unique decision-maker (a team) managing the whole supply chain with an objective to minimize (maximize) the total supply chain cost (profit), whereas a decentralized decision-making process involves multiple decision-makers who have conflicting objectives. This chapter will review the literature for quantitative models for centralised supply chain coordination that emphasize inventory management for the period from 1990 to end of 2007. In this chapter, we will classify the models on the basis of incentive schemes, supply chain levels, and assumptions. This chapter will also provide a map indicative of the limitations of the available studies and steer readers to future directions along this line of research. Centralised supply chain coordinationA typical supply chain consists of multistage business entities where raw materials and components are pushed forward from the supplier's supplier to the customer's customer. During this forward push, value is gradually added at each entity in the supply chain transforming raw materials and components to take their final form as finished products at the customer's end, the buyer. These business entities may be owned by the same organization or by several organizations. Goyal & Gupta (1989) suggested that coordination could be achieved by integrating lotsizing models. However, coordinating orders among players in a supply chain might...

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Production and shipment lot sizing in a vendor–buyer supply chain with transportation cost

Cited by 149 publications

References 13 publications

A joint economic lot size model with financial collaboration and uncertain investment opportunity

A joint economic lot size model with financial collaboration and uncertain investment opportunity

Greenhouse gas penalty and incentive policies for a joint economic lot size model with industrial and transport emissions

Quantitative Models for Centralised Supply Chain Coordination

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