A manufacturer-buyers integrated inventory model with various distributions of lead times of delivering equal- sized batches of a lot

Abstract

The single manufacturer multi-buyer integrated inventory supply chain problem with deterministic lead time of delivering batches (sub-lot) of a lot has received considerable attention. Because of influences by various factors, usually deviations occur in the times of setup of machines, inspection, loading, transportation, unloading etc., which result deviation in the lead time of delivering batches of a lot. Although the single-manufacturer single-buyer integrated supply chain problem with a particular distribution of lead times has received some attention, a model considering various distributions of lead times is unavailable. Also, the single-manufacturer multi-buyer integrated supply chain problem with stochastic lead time has received no attention from researchers. To fill up these gaps, here we develop a single-manufacturer multi-buyer integrated inventory supply chain model with various distributions of lead times of delivering equal-sized batches of a lot. Then an optimal solution technique to the model is developed, and illustrated with numerical examples. The significant potential benefit is highlighted by comparative study on solutions to numerical problems. Sensitivity analyses on the effects of various parameter values upon the minimal total cost solutions are carried out. The shortcomings of the current solution method are highlighted along with the indication of future research scope.