Abstract
Inventory management and control is concerned with the acquisition and storage of materials required for supporting various business operations. Lead time reduction is another important production activity in an integrated inventory control. Lead time plays a vital role and has been a topic of interest for many authors in inventory organization. Lead time is a necessary aspect in any supply chain management and inventory management system. The time gap between placing of an order and its actual arrival in the inventory is known as lead time. In most of the literature dealing with inventory problems, either in deterministic or probabilistic model, lead time is viewed as a prescribed constant or a stochastic variable, which therefore, is not subject to control. But, in numerous sensible circumstances, lead time can he reduced by an additional crashing cost; in other words, it is controllable, so in this article, we have considered the lead time crashing cost is an exponential function of lead time. A solution procedure is developed to find the optimal solution. In this article, both lead time and the order quantity are considered as the decision variables. The behaviour of the model is presented graphically. The result is illustrated with the help of a numerical example. Finally, Graphical representation is presented to illustrate the model. The solution procedure with the help of the software Matlab 2008 is furnished to determine the optimal solution.
Highlights
Inventory control is significant in supply chain management
Gholami-Qadikolaei et al [10] have summarised the number of advantages and benefits has been associated in the efforts of control of the lead time
In contrast to existing inventory models, this paper considers that the crashing cost is an exponential function of lead time
Summary
Inventory control is significant in supply chain management. In current years, the majority inventory problems have focused on the integration between the supplier and the retailer. The integrated inventory model has become more and more important, because the supplier and the retailer wish to increase their mutual benefit; they endeavour to form a strategic alliance in order to minimize their own cost or maximize their own profit, and the trading parties can collaborate and share information to achieve improved benefits. Gholami-Qadikolaei et al [10] have summarised the number of advantages and benefits has been associated in the efforts of control of the lead time (which is a goal of JIT inventory management philosophies that emphasizes high quality and keeps low inventory level and lead time to a practical minimum). Numerical example is provided to illustrate the benefits of integration
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