Highlights A joint production/delivery quantity model in two-echelon supply chain is developed. The integrated cost function with transportation cost has been shown to be convex. Analytical formulas are derived for computing the optimal synchronized policy. Numerical study has demonstrated the significant savings in total operating cost.

    Abstract An integrated production/delivery quantity model in a make-to-order producer–buyer supply chain is analyzed in this paper. The coordinated policy is achieved by scheduling single setup at the producer with multi-delivery to the buyer. We develop two synchronized cost models that include setup cost at the producer, ordering cost at the buyer, inventory carrying cost, and transportation cost that is a fitted power function of delivery quantity, using actual shipping rate data. The mathematical analysis and computational study have demonstrated that significant cost savings can be realized by implementing the proposed approach into the network optimization process.


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    Title :

    Joint production and delivery lot sizing for a make-to-order producer–buyer supply chain with transportation cost


    Contributors:


    Publication date :

    2014-03-12


    Size :

    13 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English