M. Rabbani,
Volume 21, Issue 1 (7-2002)
Abstract
In most stochastic inventory models, such as continuous review models and periodic review models, it has been assumed that the stockout period during a cycle is small enough to be neglected so that the average number of cycles per year can be approximated as D/Q, where D is the average annual demand and Q is the order quantity. This assumption makes the problem more tactable, but it should not be adopted when the beck order and lost sales penalty costs are relatively small. In this paper, considering a continuous review inventory model, we relax the above assumption and we explicitly take into account the stockout period when computing the expected cycle length. Further, we consider the effect of using exact number of cycles rather than using approximate of cycles in a continuous review inventory model.
Keywords: Inventory control, Stochastic demand, Continuous review, Inventory cycle
A. Arkan, and S.r. Hejazi,
Volume 27, Issue 2 (1-2009)
Abstract
Supply chain coordination has become a critical success factor for supply chain management (SCM). In the past few years, the researchers have widely emphasized that cooperation among supply chain (SC) firms is a key source of competitive advantage. This paper is focused on supply chain coordination from the perspective of inventory management. Li and Liu [1] developed a model for illustrating how to use quantity discount policy by price adjustment mechanism to achieve supply chain coordination. We extend this mechanism to three echelon supply chain and consider variable lead time which has more
representation of the real world situation. For this purpose, we will develop a model with benefit objective function for the problem. We will then analyze the model with and without coordination. By solving the proposed model, proper order quantities will be obtained. Finally, the advantages of the proposed mechanism will be explored and a surplus benefit dividing method will be designed.
