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An integrated production-distribution model for a deteriorating inventory item

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  • Yan, Changyuan
  • Banerjee, Avijit
  • Yang, Liangbin

Abstract

We develop an integrated production-distribution model for a deteriorating item in a two-echelon supply chain. The supplier's production batch size is restricted to an integer multiple of the discrete delivery lot quantity to the buyer. Exact cost functions for the supplier, the buyer and the entire supply chain are developed. These lead to the determination of individual optimal policies, as well as the optimal policy for the overall, integrated supply chain. We outline a procedure for determining the optimal supply chain decisions with the objective of minimizing the total system cost. Our approach is illustrated through a numerical example.

Suggested Citation

  • Yan, Changyuan & Banerjee, Avijit & Yang, Liangbin, 2011. "An integrated production-distribution model for a deteriorating inventory item," International Journal of Production Economics, Elsevier, vol. 133(1), pages 228-232, September.
    • Handle: RePEc:eee:proeco:v:133:y:2011:i:1:p:228-232
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    References listed on IDEAS

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    2. Soysal, Mehmet & Bloemhof-Ruwaard, Jacqueline.M. & Meuwissen, Miranda P.M. & van der Vorst, Jack G.A.J., 2012. "A Review on Quantitative Models for Sustainable Food Logistics Management," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 3(2), pages 1-20, December.
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    4. Kasin Ransikarbum & Scott J. Mason, 2016. "Multiple-objective analysis of integrated relief supply and network restoration in humanitarian logistics operations," International Journal of Production Research, Taylor & Francis Journals, vol. 54(1), pages 49-68, January.
    5. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    6. Chan, Chi Kin & Wong, Wai Him & Langevin, A. & Lee, Y.C.E., 2017. "An integrated production-inventory model for deteriorating items with consideration of optimal production rate and deterioration during delivery," International Journal of Production Economics, Elsevier, vol. 189(C), pages 1-13.
    7. Ma, Xueli & Wang, Jian & Bai, Qingguo & Wang, Shuyun, 2020. "Optimization of a three-echelon cold chain considering freshness-keeping efforts under cap-and-trade regulation in Industry 4.0," International Journal of Production Economics, Elsevier, vol. 220(C).
    8. Sicilia, Joaquín & González-De-la-Rosa, Manuel & Febles-Acosta, Jaime & Alcaide-López-de-Pablo, David, 2014. "An inventory model for deteriorating items with shortages and time-varying demand," International Journal of Production Economics, Elsevier, vol. 155(C), pages 155-162.
    9. Bai, Qingguo & Chen, Mingyuan & Xu, Lei, 2017. "Revenue and promotional cost-sharing contract versus two-part tariff contract in coordinating sustainable supply chain systems with deteriorating items," International Journal of Production Economics, Elsevier, vol. 187(C), pages 85-101.
    10. Govindan, K. & Jafarian, A. & Khodaverdi, R. & Devika, K., 2014. "Two-echelon multiple-vehicle location–routing problem with time windows for optimization of sustainable supply chain network of perishable food," International Journal of Production Economics, Elsevier, vol. 152(C), pages 9-28.
    11. Soysal, Mehmet & Bloemhof, Jacqueline M. & van der Vorst, Jack G.A.J., 2012. "A Review of Quantitative Models for Sustainable Food Logistics Management: Challenges and Issues," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144974, International European Forum on System Dynamics and Innovation in Food Networks.
    12. Wang, Gang & Lei, Lei, 2012. "Polynomial-time solvable cases of the capacitated multi-echelon shipping network scheduling problem with delivery deadlines," International Journal of Production Economics, Elsevier, vol. 137(2), pages 263-271.
    13. Amorim, P. & Günther, H.-O. & Almada-Lobo, B., 2012. "Multi-objective integrated production and distribution planning of perishable products," International Journal of Production Economics, Elsevier, vol. 138(1), pages 89-101.
    14. Yu, Jonas C.P., 2013. "A collaborative strategy for deteriorating inventory system with imperfect items and supplier credits," International Journal of Production Economics, Elsevier, vol. 143(2), pages 403-409.
    15. Ghiami, Yousef & Williams, Terry, 2015. "A two-echelon production-inventory model for deteriorating items with multiple buyers," International Journal of Production Economics, Elsevier, vol. 159(C), pages 233-240.
    16. Lee, Sunghee & Kim, Daeki, 2014. "An optimal policy for a single-vendor single-buyer integrated production–distribution model with both deteriorating and defective items," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 161-170.
    17. Heibatolah Sadeghi & Hêriş Golpîra & Faicel Hnaien & Cosimo Magazzino, 2023. "Pricing-inventory model with discrete demand and delivery orders," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 33(3), pages 119-139.
    18. Lin, Feng & Jia, Tao & Wu, Feng & Yang, Zhen, 2019. "Impacts of two-stage deterioration on an integrated inventory model under trade credit and variable capacity utilization," European Journal of Operational Research, Elsevier, vol. 272(1), pages 219-234.
    19. Yang, Lei & Tang, Ruihong, 2019. "Comparisons of sales modes for a fresh product supply chain with freshness-keeping effort," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 425-448.

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