Document Type

Conference Paper

Publication Date

2020

Publication Title

Proceedings of the 5th NA International Conference on Industrial Engineering and Operations Management

Pages

1319-1330

Conference Name

5th NA International Conference on Industrial Engineering and Operations Management, August 10-14, 2020, Detroit, Michigan

Abstract

We investigate the stochastic integrated inventory model wherein the buyer's lead time demand follows the mixture of normal distributions. Due to the high acquisition cost of land, we assume that buyer's maximum permissible storage space is limited and therefore adds a space constraint to the respective inventory system. Besides, it is assumed that the manufacturing process is imperfect and produces defective units, and hence each lot received by the buyer contains percentage defectives. The paper also considers controllable lead time components and ordering cost for the system. Based on lead-time components, a multilevel reorder strategy-based supply chain model is developed for the proposed system, and a Lagrange multiplier method is applied to solve the problem to reduce the expected inventory cost of both buyer and vendor. We develop a solution procedure to find the optimal values and show the applicability of the model and solution procedure in numerical examples.

Rights

© 2020 IEOM Society International. All Rights Reserved.

Included with the kind written permission of the copyright holder.

ORCID

0000-0002-9759-9210 (Tahami), 0000-0002-7855-050X (Fakhravar)

Original Publication Citation

Tahami, H., & Fakhravar, H. (2020). Multilevel reorder strategy-based supply chain model. In Proceedings of the 5th NA International Conference on Industrial Engineering and Operations Management (pp. 1319-1330). IEOM Society International. https://www.ieomsociety.org/detroit2020/papers/304.pdf

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