Models of Centralized Inventory for Single-Vendor and Single-Buyer System with Controllable Leadtime and Batch of Production

Yevita Nursanti

Abstract

This research will be developed a model of centralization between vendor-buyer with probabilistic demand ,lot quantities, leadtime, frequency of delivery and batch of production as one of the decision variables. The objectives of this research were total cost minimization on vendor and buyer. The mathematical model was developed by attempting various inputs on the model and comparing the results for each variation of the model inputs to obtain mutually beneficial policies on vendors and buyer. Lead time can be reduced by adding crashing costs (extra costs incurred to shorten lead time), so lead time can be controlled. Benefits from reduced lead times are low safety stocks, reduced stock outs, improved service levels to consumers, and provide competitive advantage, as evidenced by Just-In-Time (JIT) production. At the end, the authors evaluate the advantages of the coordination strategy offered by numerical examples.This paper describes one types of models with controlled lead times, a model with centralized decision model. The solution to be given is the optimal solution.

Full Text:

PDF

References

Ben-Daya, M., and Hariga, M., 2004. ”Integrated Single Vendor Single Buyer Model with Stochastic Demand and Variable Lead Time.” International Journal of Production Economic, Vol. 92, pp. 75-80.

Fei Ye., Yi Na Li., and Xue Jun Xu., 2008. “Research on Supply Chain Inventory Optimization and Benefit Coordination with Controllable Lead Time.”Jounal Serv. Sci. & Management. Vol, 1: 21-27

Jauhari, and Pujawan, I.N., 2009. “Model joint economic lot size pada kasus pemasok pembeli dengan permintaan probabilistic.” Jurnal Teknik Industri, Vol. 11, No, pp. 1-14.

Pujawan, I. N., and Kingsman, Brian G., 2002. “Joint Optimisation and Timing Synchronisation in a Buyer Supplier Inventory System.” International Journal of Operations and QuantitativeManagement, Vol. 8, pp. 93-110.

Render, and Hayzer., Manajemen Operasi.,Salemba Empat, Jakarta, 2000

Nur bahagia, Senator., Sistem Inventori.,ITB, Bandung, 2006

Arnold, J.R Tony., Introduction to material Management.,CPIM, PE, 2010

Forgarty, DW., Blackstone, J.H and Hoffmann., Production and Inventory Mangement (Ed.2).,South Western Publishing Co, Ohio, 1991

Refbacks

  • There are currently no refbacks.