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A new discrete time inventory control algorithm for a 2-echelon supply chain

Afzalabadi, M ; Sharif University of Technology

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  1. Type of Document: Article
  2. Abstract:
  3. Although inventory control under discrete demand in dynamic quantities and time intervals are very common in reality, existing literature has largely ignored them. In this paper, we investigate the inventory control decisions in a two echelon supply chain consists of one vendor and several retailers. The vendor supplies a product to several retailers, buying discrete quantities in pre-determined time intervals. The order quantity and order cycles for each retailer can be different from others. Vendor orders the required quantity from supplier and it'll be immediately received at the vendor's warehouse. In this system, shortage is not allowed for the vendor. The transportation time from the supplier to the vendor is assumed to be zero and the supplier has enough stock that would never face shortages. We have developed a new efficient algorithm to find the optimal ordering policy involves the scheduling and the order quantity of vendor to his supplier to minimize his cost function in infinite time horizon
  4. Keywords:
  5. Discrete time ; Dynamic demand ; Infinite time horizon ; Inventory control ; Algorithms ; Chains ; Cost functions ; Manufacture ; Sales ; Scheduling ; Supply chains ; Discrete demand ; Optimal ordering policy ; Order quantity ; Transportation time ; Two-echelon supply chain
  6. Source: CIE 2014 - 44th International Conference on Computers and Industrial Engineering and IMSS 2014 - 9th International Symposium on Intelligent Manufacturing and Service Systems, Joint International Symposium on "The Social Impacts of Developments in Information, Manufacturing and Service Systems" - Proceedings ; 2014 , pp. 403-411
  7. URL: http://toc.proceedings.com/24604webtoc.pdf