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A generalized algebraic model for optimizing inventory decisions in a multi-stage complex supply chain

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  • Seliaman, M.E.
  • Ahmad, Ab Rahman
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    Abstract

    In this paper, we deal with more generalized inventory coordination mechanism in an n-stage, multi-customer, non-serial supply chain, where we extend and generalize pervious works that use algebraic methods to optimize this coordinated supply chain. We establish the recursive expressions for this multi-variable optimization problem. These expressions are used for the derivation of the optimal replenishment policy and the development of the solution algorithm. Further, we describe a simple procedure that can help in sharing the coordination cost benefits to induce all stages to adopt the inventory coordination mechanism. We provide a numerical example for illustrative purposes.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1366554508001282
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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.

    Volume (Year): 45 (2009)
    Issue (Month): 3 (May)
    Pages: 409-418

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    Handle: RePEc:eee:transe:v:45:y:2009:i:3:p:409-418

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    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description

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    Related research

    Keywords: Supply chain integration Production-inventory models Without derivatives;

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    Cited by:
    1. Glock, Christoph H., 2012. "The joint economic lot size problem: A review," International Journal of Production Economics, Elsevier, vol. 135(2), pages 671-686.

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