Abstract
The first level of the supply chain basically contains three distinguished levels; these are single buyer (that is retailer), the second level vendor (that is warehouse) and single seller in the third level. The aim of this study was to investigate the cooperative of inventory models among the players in a three-level supply chain. In addition, the challenges involved in determining the optimal value of time interval between consecutive setups and orders in a coordinated inventory model were also taken into consideration. For this purpose, the researchers selected three types of non-cooperative models; nonetheless, the primary focus of this model is to reduce the coordinated total relevant cost to the minimum. This was followed by the implementation of recompense policy for the losses and profits of the coordinated inventory model proposed in the present study. The method which offers an optimal solution for the model developed in this study was obtained, whereas a numerical example was also given and demonstrated. Key words: Three-level supply chain, inventory models, cooperative and non-cooperative models.
Highlights
It is important to note that the inventory decision model of supply chain has successfully been used in various organizations and companies worldwide for the past few years
The problem pertaining to warehouse and the three seller–buyer supply chain management has been taken into consideration and discussed in this paper
Both the non-cooperative and cooperative models have been given, whereas the inventory model used to determine the optimal value of time interval and the integer number of both the cooperative and non-cooperative model has been developed
Summary
It is important to note that the inventory decision model of supply chain has successfully been used in various organizations and companies worldwide for the past few years. The application of the inventory models in any supply chain offers a lot of benefits, in term of achieving coordination. Goyal and Gupta (1989) and Ben-Daya et al (2008), have contributed to improve literature on cooperated inventory models. According to Goyal and Gupta (1989), applying the inventory decision models of players in a particular supply chain is a common method of obtaining good coordination. Coordinating orders in a two-level [vendor–buyer(s)] supply chain has become the main issue discussed by various researchers in their studies
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