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Optimal production-inventory policy for an integrated multi-stage supply chain with time-varying demandAuthor-Name: Zhao, Shi Tao

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  • Wu, Kan
  • Yuan, Xue-Ming

Abstract

An integrated multi-stage supply chain with time-varying demand over a finite planning horizon is considered in this paper. The objective is to devise the optimal production-inventory policy to minimize the total operational cost. The model is formulated as a mixed integer nonlinear programming problem. The problem is represented as a weighted directed acyclic graph. The global minimum total operational cost is computed in polynomial time by the developed algorithm. Two numerical examples of a seasonal product and a product over its life cycle are studied to illustrate the results. A sensitivity analysis of the system parameters is conducted to assist the supply chain decision makers.

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  • 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.
    • Handle: RePEc:eee:ejores:v:255:y:2016:i:2:p:364-379
    DOI: 10.1016/j.ejor.2016.04.027
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    Cited by:

    1. Kai Kang & Wei Pu & Yanfang Ma & Xiaoyu Wang, 2018. "Bi-objective inventory allocation planning problem with supplier selection and carbon trading under uncertainty," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-25, November.
    2. Hossain, Md Shahriar J. & Ohaiba, Mohamed M. & Sarker, Bhaba R., 2017. "An optimal vendor-buyer cooperative policy under generalized lead-time distribution with penalty cost for delivery lateness," International Journal of Production Economics, Elsevier, vol. 188(C), pages 50-62.
    3. Giri, B.C. & Bardhan, Sudarshan, 2017. "Sub-supply chain coordination in a three-layer chain under demand uncertainty and random yield in production," International Journal of Production Economics, Elsevier, vol. 191(C), pages 66-73.

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