Title

Coordinating production and shipment decisions in a two-stage supply chain with time-sensitive demand

Authors

Authors

E. J. Lodree; C. D. Geiger;K. N. Ballard

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Math. Comput. Model.

Keywords

Inventory control; Direct shipping; Supply chain responsiveness; INVENTORY ROUTING PROBLEM; VENDOR-MANAGED INVENTORY; DIRECT SHIPPING; STRATEGY; DEPENDENT WAITING COSTS; INTEGRATED PRODUCTION; DISTRIBUTION-SYSTEMS; ALLOCATION POLICIES; STOCHASTIC DEMAND; RETAILER; SYSTEMS; TRANSPORTATION; Computer Science, Interdisciplinary Applications; Computer Science, ; Software Engineering; Mathematics, Applied

Abstract

This paper investigates a supply chain system consisting of one manufacturer who receives an order from a single retailer and then coordinates a production and shipment schedule to fulfill the retailer's order as quickly and cost effectively as possible. It is assumed that the neither the manufacturer nor the retailer has inventory on hand at the time the retailer's order is received by the manufacturer, and that the demand rate at the retailer is constant. It is also assumed that shortages at the retailer result in lost sales penalties. In this setting, lost sales penalties are incurred during the time in which the retailer has no inventory on hand, which illustrates the time-sensitive nature of the demand. We derive the manufacturer's optimal production and shipping policy for the case in which the retailer controls the supply chain relationship, and also for the case in which the manufacturer controls the relationship. (C) 2009 Elsevier Ltd. All rights reserved.

Journal Title

Mathematical and Computer Modelling

Volume

51

Issue/Number

5-6

Publication Date

1-1-2010

Document Type

Article

Language

English

First Page

632

Last Page

648

WOS Identifier

WOS:000273664800029

ISSN

0895-7177

Share

COinS