Optimisation of supply chains for single vendor?multibuyer consignment stock policy under controllable lead time using genetic algorithm. (23rd July 2007)

• Record Type: Journal Article
• Authors: Srinivas, Ch.; Rao, C.S.P.
• Is Part Of: International journal of manufacturing research. Volume 2:Number 2(2007)
• Page Start: 243
• Page End: 262
• Publication Date: 2007-07-23
• Subjects: consignment stock -- single vendor?multibuyer model -- genetic algorithms -- supply chain optimisation -- supply chain management -- SCM -- stochastic demand -- control lead times -- crashing cost -- inventory modelling -- joint total expected cost; Manufacturing processes -- Periodicals; Manufacturing processes -- Automation -- Periodicals; Production engineering -- Periodicals; Factory management -- Periodicals; 670.5
• Languages: English
• ISSNs: 1750-0591

Abstract

In this article, we develop a controllable-lead-time inventory model where the lead time is assumed to be dependent because at the time of contract with a manufacturer, the retailer may intend to reduce the lead time, for which he will pay an additional cost to accomplish an increased production rate. The lead time of Consignment Stock (CS) strategy has been controlled to minimise Joint Total Expected Cost (JTEC), and other decision variables such as quantity transported, lead time, number of transport operations and delay deliveries under stochastic environment have been simultaneously optimised so as to gain competitive advantage in the business strategy. Numerical examples and sensitivity analysis are presented to illustrate the solution procedure.