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Operations policy for a supply chain system with fixed-interval delivery and linear demand

Author

Listed:
  • A Diponegoro

    (Louisiana State University)

  • B R Sarker

    (Louisiana State University)

Abstract

This research addresses a production-supply problem for a supply-chain system with fixed-interval delivery. A strategy that determines the optimal batch sizes, cycle times, numbers of orders of raw materials, and production start times is prescribed to minimize the total costs for a given finite planning horizon. The external demands are time-dependent following a life-cycle pattern and the shipment quantities follow the demand pattern. The shipment quantities to buyers follow various phases of the demand pattern in the planning horizon where demand is represented by piecewise linear model. The problem is formulated as an integer, non-linear programming problem. The model also incorporates the constraint of inventory capacity. The problem is represented using the network model where an optimal characteristic has been analysed. To obtain an optimal solution with N shipments in a planning horizon, an algorithm is proposed that runs with the complexity of Θ(N2) for problems with a single-phase demand and O(N3) for problems with multi-phase demand.

Suggested Citation

  • A Diponegoro & B R Sarker, 2007. "Operations policy for a supply chain system with fixed-interval delivery and linear demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(7), pages 901-910, July.
    • Handle: RePEc:pal:jorsoc:v:58:y:2007:i:7:d:10.1057_palgrave.jors.2602199
    DOI: 10.1057/palgrave.jors.2602199
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    References listed on IDEAS

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    4. Diponegoro, Ahmad & Sarker, Bhaba R., 2002. "Determining manufacturing batch sizes for a lumpy delivery system with trend demand," International Journal of Production Economics, Elsevier, vol. 77(2), pages 131-143, May.
    5. Awi Federgruen & Michal Tzur, 1991. "A Simple Forward Algorithm to Solve General Dynamic Lot Sizing Models with n Periods in 0(n log n) or 0(n) Time," Management Science, INFORMS, vol. 37(8), pages 909-925, August.
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    Cited by:

    1. Sarker, Bhaba R. & Diponegoro, Ahmad, 2009. "Optimal production plans and shipment schedules in a supply-chain system with multiple suppliers and multiple buyers," European Journal of Operational Research, Elsevier, vol. 194(3), pages 753-773, May.
    2. Tamás Bányai & Béla Illés & Miklós Gubán & Ákos Gubán & Fabian Schenk & Ágota Bányai, 2019. "Optimization of Just-In-Sequence Supply: A Flower Pollination Algorithm-Based Approach," Sustainability, MDPI, vol. 11(14), pages 1-26, July.
    3. Wu, Kan & Yuan, Xue-Ming, 2016. "Optimal production-inventory policy for an integrated multi-stage supply chain with time-varying demandAuthor-Name: Zhao, Shi Tao," European Journal of Operational Research, Elsevier, vol. 255(2), pages 364-379.
    4. Warburton, Roger D.H. & Hodgson, J.P.E. & Nielsen, E.H., 2014. "Exact solutions to the supply chain equations for arbitrary, time-dependent demands," International Journal of Production Economics, Elsevier, vol. 151(C), pages 195-205.

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