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Coordination of planning and scheduling decisions in global supply chains with dual supply modes

Author

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  • Bhatnagar, Rohit
  • Mehta, Peeyush
  • Chong Teo, Chee

Abstract

We address the problem of coordinating aggregate planning decisions and short-term scheduling decisions in supply chains with dual supply modes. We consider long lead time, less expensive sea shipments that are based on demand forecast, and responsive but costly air shipments that are based on revised forecast closer to the demand period. The planning problem determines the sea shipment order quantity and inventory level, while the scheduling model determines the schedule and quantity of air shipments. Results from our numerical experiments suggest that our model leads to consistent cost improvements over a wide range of operating scenarios.

Suggested Citation

  • Bhatnagar, Rohit & Mehta, Peeyush & Chong Teo, Chee, 2011. "Coordination of planning and scheduling decisions in global supply chains with dual supply modes," International Journal of Production Economics, Elsevier, vol. 131(2), pages 473-482, June.
  • Handle: RePEc:eee:proeco:v:131:y:2011:i:2:p:473-482
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    References listed on IDEAS

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    1. Wang, Sheng-Dong & Zhou, Yong-Wu & Wang, Jun-Ping, 2010. "Coordinating ordering, pricing and advertising policies for a supply chain with random demand and two production modes," International Journal of Production Economics, Elsevier, vol. 126(2), pages 168-180, August.
    2. George Tagaras & Dimitrios Vlachos, 2001. "A Periodic Review Inventory System with Emergency Replenishments," Management Science, INFORMS, vol. 47(3), pages 415-429, March.
    3. Yoichiro Fukuda, 1964. "Optimal Policies for the Inventory Problem with Negotiable Leadtime," Management Science, INFORMS, vol. 10(4), pages 690-708, July.
    4. Chiang, Chi & Gutierrez, Genaro J., 1996. "A periodic review inventory system with two supply modes," European Journal of Operational Research, Elsevier, vol. 94(3), pages 527-547, November.
    5. Chiang, Chi, 2003. "Optimal replenishment for a periodic review inventory system with two supply modes," European Journal of Operational Research, Elsevier, vol. 149(1), pages 229-244, August.
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    Citations

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    Cited by:

    1. Serel, Doğan A., 2012. "Multi-item quick response system with budget constraint," International Journal of Production Economics, Elsevier, vol. 137(2), pages 235-249.
    2. Liu, Weihua & Wang, Qian & Mao, Qiaomei & Wang, Shuqing & Zhu, Donglei, 2015. "A scheduling model of logistics service supply chain based on the mass customization service and uncertainty of FLSP’s operation time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 189-215.
    3. Laurent Lim, Lâm & Alpan, Gülgün & Penz, Bernard, 2014. "Reconciling sales and operations management with distant suppliers in the automotive industry: A simulation approach," International Journal of Production Economics, Elsevier, vol. 151(C), pages 20-36.
    4. Zahraei, Seyed Mehdi & Teo, Chee-Chong, 2017. "Optimizing a supply network with production smoothing, freight expediting and safety stocks: An analysis of tactical trade-offs," European Journal of Operational Research, Elsevier, vol. 262(1), pages 75-88.
    5. Wolfgang Albrecht & Martin Steinrücke, 2020. "Continuous-time scheduling of production, distribution and sales in photovoltaic supply chains with declining prices," Flexible Services and Manufacturing Journal, Springer, vol. 32(3), pages 629-667, September.
    6. Yeung, Wing-Kwan & Choi, Tsan-Ming & Cheng, T.C.E., 2011. "Supply chain scheduling and coordination with dual delivery modes and inventory storage cost," International Journal of Production Economics, Elsevier, vol. 132(2), pages 223-229, August.
    7. Weihua Liu & Yi Yang & Shuqing Wang & Enze Bai, 2017. "A scheduling model of logistics service supply chain based on the time windows of the FLSP’s operation and customer requirement," Annals of Operations Research, Springer, vol. 257(1), pages 183-206, October.
    8. Ziping Wang & Wenlian Gao & Samar K. Mukhopadhyay, 2016. "Impact of taxation on international transfer pricing and offshoring decisions," Annals of Operations Research, Springer, vol. 240(2), pages 683-707, May.

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