Optimizing the Total Cost of Inventory Control System in Integrated Multi-Echelon Supply Chain With Time-sensitive Deteriorating Rates

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Mohammadi, Vahid | 2012

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 44151 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): hajji, Rasool
Abstract:
In this paper, we consider a three-echelon supply chain consisting of a producer, a distributor and a retailer. Generally each echelon tends to minimize his own inventory costs. On the other hand, competitive environment of business market, force companies to develop strategic alliances. In order to boost their partnership, separated echelons must integrate their policies, so that the total cost of the system be minimized. The model, extends the research of Wang et al.(2011) by changing the No shortage assumption into backlog shortage model.
This study assumes different deterioration rates among different echelons, and deterioration rates are time-sensitive, which is very helpful in agricultural industry. There is one product in each echelon and demand rate is constant. Deterioration rates changed along with the time and decayed goods can’t be replaced. Retailer can face backlog shortage and replenishment in the retailer and distributor is instantaneous. In this study we consider the integrated supply chain and develop the joint optimum policy. Sensitivity analysis is given to show the significant effect of changes in deterioration parameters, in total cost
Keywords:
Inventory Control ; Deterioration ; Inventory Shortage ; Three-Stage Supply Chain ; Integration