Deriving the Cost Function and Optimal Boundaries for a Two-level Inventory System with Information Sharing and Identical Retailers

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Afshar Sedigh, Amir Hosein | 2014

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 45856 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): Haji, Rasoul
Abstract:
In this study we consider a two-level supply chain, with a supplier and a number of identical retailers, demand process is Poisson with random rate. All retailers apply (R,Q) policy with backorder case for their inventory control supplier fulfills the orders of retailers according to FIFO discipline. At any point of time the supplier has online information about inventory position of all retailers.
Whenever the inventory position of a retailer reaches to a fixed value (s) above its reorder point, the supplier orders a batch of size Q to an outside source with infinite capacity. Lead-time of each retailer is equal to the sum of a constant transportation time and a delay time which is varying due to the shortage at the supplier. In the literature of the inventory control the approximate long-run unit total cost of this supply chain for N retailers and also the exact cost of the system for the case of only one retailer and its optimization algorithm have been presented. In this research we obtain the exact cost of the system for the case of more than one retailer. Furthermore, we will present optimal boundaries for m, R, and s
Keywords:
Continuose Review ; Information Sharing ; Supply Chain Management (SCM) ; Poisson Process ; Multi-Echelon Inventory Control

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