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Determining Optimal Policy for Production and Inventory Control of Deteriorating Poducts in Supply Chains Under Uncertain Conditions

Sazvar, Zeinab | 2014

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  1. Type of Document: Ph.D. Dissertation
  2. Language: Farsi
  3. Document No: 45920 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Akbari Jokar, Mohammad Reza
  7. Abstract:
  8. Nowadays, increasing of difficulties in production and procurement conditions such as competitiveness among manufacturing firms, variety of products, rapidly changing of customer tastes, shortening of product lifetime and complexity of demand forecasting on one hand, and key role of consumers and deteriorating products on countries revenue on the other hand, make replenishment policies of deteriorating products challenging and also interesting for both researchers and corporate managers.In this dissertation several novel models on replenishment policies for deteriorating products are proposed under uncertainty by the help of single or multi objective mathematical models. One important characteristics of this research work is studying the deterioration concept under new conditions such as stochastic lead times, dynamics/stochastic demands, or by considering order splitting policy, environmental criteria and greenhouse gases (GHGs) emissions. In this way, we are going to determine optimal replenishment policy, transportation policy and sourcing policy subject to warehouse or transportation vehicle capacities.The objective functions of the proposed models are as follows: 1-Minimizing total logistics costs including set up cost (item and joint set up costs), procurement, holding and shortage (backorder, lost sale, partial backorder) costs as well as transportation, recycling and deterioration costs. 2-Minimizing greenhouse gases emissions by logistics activities such as transportation, deterioration and recycling. The uncertainty in lead time and demands are defined by two approaches: 1) defining distribution functions, and 2) defining possible scenarios. As well, in order to model deterioration phenomenon, we applied some approaches like considering a deterioration function, an expiration date or defining a non linear time/inventory-dependent holding cost function. Finally the proposed models are solved using the exact methods, numerical methods (Sequential Quadratic Programming) or meta-heuristic ones (Genetic algorithm). In order to validate and verify proposed models and solution algorithms we apply the developed models on two real case studies from European pharmaceutical industries also on the numerous numerical examples. Also, a comparison is done between the solutions of the proposed meta-heuristic method and the results obtained from the standard packages such as CPLEX. By analyzing the numerical results the applicability, practicability and efficiency of the proposed methods and mathematical models are demonstrated.
  9. Keywords:
  10. Uncertainty ; Supply Chain Management (SCM) ; Multi-State Deteriorating Products ; Production Control ; Deterioration ; Inventory Control ; Optimal Policy ; Nonlinear Holding Cost

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