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Replenishment and lead time decisions in manufacturer-retailer chains


  • Hsu, Shu-Lu
  • Lee, Chun Chen


This study investigates the decisions of replenishment and lead-time reduction for a single-manufacturer multiple-retailer integrated inventory system in which the probability distribution of demand for each retailer is unknown but its mean and variance are given. A decision model is presented and a minimax distribution free procedure is applied to determine the lead time, the common shipment cycle time, the target levels of replenishments and the number of shipments per production cycle so that the expected total system cost can be minimized. A decision support system has been implemented on a personal computer to illustrate the application of the model.

Suggested Citation

  • Hsu, Shu-Lu & Lee, Chun Chen, 2009. "Replenishment and lead time decisions in manufacturer-retailer chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(3), pages 398-408, May.
  • Handle: RePEc:eee:transe:v:45:y:2009:i:3:p:398-408

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    2. repec:spr:ijsaem:v:8:y:2017:i:2:d:10.1007_s13198-017-0611-y is not listed on IDEAS
    3. Heydari, Jafar, 2014. "Lead time variation control using reliable shipment equipment: An incentive scheme for supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 63(C), pages 44-58.
    4. Jian, Ming & Fang, Xin & Jin, Liu-qian & Rajapov, Azamat, 2015. "The impact of lead time compression on demand forecasting risk and production cost: A newsvendor model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 84(C), pages 61-72.
    5. Sujit Kumar De & Shib Sankar Sana, 0. "The (p, q, r, l) model for stochastic demand under Intuitionistic fuzzy aggregation with Bonferroni mean," Journal of Intelligent Manufacturing, Springer, vol. 0, pages 1-19.
    6. Glock, Christoph H., 2012. "The joint economic lot size problem: A review," International Journal of Production Economics, Elsevier, vol. 135(2), pages 671-686.
    7. M. Vijayashree & R. Uthayakumar, 2016. "Two-echelon supply chain inventory model with controllable lead time," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 7(1), pages 112-125, December.
    8. Xiao, Tiaojun & Choi, Tsan-Ming & Cheng, T.C.E., 2016. "Delivery leadtime and channel structure decisions for make-to-order duopoly under different game scenarios," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 113-129.
    9. Heydari, Jafar & Mahmoodi, Mansour & Taleizadeh, Ata Allah, 2016. "Lead time aggregation: A three-echelon supply chain model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 215-233.


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