One-for-one period policy and a series of suppliers

Haji, R ; Sharif University of Technology

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  1. Type of Document: Article
  2. DOI: 10.1109/ICCIE.2009.5223504
  3. Abstract:
  4. The purpose of this paper is to adopt and analyze a new ordering policycalled one-for-one-period policy in a multi-echelon supply chain consisting ofone retailer and a series of TV suppliers. The main advantage of adopting theone-for-one-period (7,7) ordering policy for retailers is the elimination ofuncertainty for supplier which leads to total elimination of the safety stocksat all suppliers. This in turn leads to the reduction of the total system costsand in case any supplier's ordering cost is negligible it can even eliminate theneed for him to carry any inventory. In addition to this advantage, thenumerical results show that the application of this new policy for the retailerleads to the further advantage of outperforming the one-for-one (S-1,S) policyin terms of total multi-echelon system cost under specified conditions. Wederive the minimum total cost for this multi-echelon system and provide anumerical example to shed light on the merits of the proposed model compared tothe common practice as reported in the literature. © 2009 IEEE
  5. Keywords:
  6. Supply chain ; Multi-echelon ; Multi-echelon supply chains ; Ordering cost ; Ordering policies ; System costs ; Total costs ; Industrial engineering ; Inventory control ; Supply chain management ; Supply chains ; Cost reduction
  7. Source: 2009 International Conference on Computers and Industrial Engineering, CIE 2009, 6 July 2009 through 9 July 2009, Troyes ; 2009 , Pages 902-906 ; 9781424441365 (ISBN)
  8. URL: http://ieeexplore.ieee.org/document/5223504