A Modeling of Multi-Echelon Suppliers’ Chain for Deteriorating Items
Abstract: Inventory
models for a
policy of retail
pricing and perishable
items have been developed in
many papers, but
very few of
the studies incorporate
both of these
effects. This study integrates
the two conditions
from a three-echelon
supplier’s chain and
offers a mathematical modeling
for deteriorating inventory
system with an
optimal joint-cost policy. Exponentially deteriorating items
with no shortages is assumed in this study.
Two scenarios are considered.
Scenario 1 assumed
one supplier, one
distributor and one
retailer occurs at the
regular inventory replenishment
time, and scenario
2 assumes two
suppliers, one distributor and two competitive retailers
that to address this issue, we broaden the benchmark setting by letting the
independent retailer channel be a duopoly. The mathematical model describes how
the integrated approach
to decision making
can achieve global
optimality as compared
to independent decision by
the suppliers, the
distributor, and the
retailers. A computer
code is developed to derive the
optimal solution. Numerical examples and sensitivity analysis are given to
validate the results of the system.
Author: Jonas Yu, G.A.
Widyadana
Journal Code: jptindustrigg110005
