Inventory Control and Carrier Mode Selection in a Two-echelon Supply Chain with Deteriorating Items

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Shomalzadeh, Nooshin | 2014

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 46000 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): Modarres Yazdi, Mohammad
Abstract:
This study investigates a two-echelon supply consists of a vendor and a buyer with deteriorating items. The deterioration rate of product is assumed to be constant and independent of time. The buyer’s order is shipped in equal-sized batches. Moreover, in order to ship products from vendor to buyer, two carrier’s modes with different travelling time and cost are considered. What distinguishes this study from literature is that the deterioration of product continues during the travelling time which depends on the carrier’s mode to ship batches from vendor to buyer.
The objective is to minimize the cost of both buyer and vendor simultaneously. The cost functions of buyer and vendor are modeled with an exact approach and to compare an independent decision with an integrated one by both parties, algorithms for solving the corresponding models are designed.
Sensitivity analysis is also given to examine the sensitivity of decision variables and the performance measure of supply chain. The results of numerical examples show that the proposed integrated model can produce lower cost in comparison with an independent decision by the vendor and the buyer
Keywords:
Optimization ; Lead Time ; Two-Stage Supply Chain ; Inventory Control ; Integrated Supply Chain ; Deteriorating Inventory

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