Abstract
This paper develops an integrated production inventory model for a two echelon supply chain consisting of one manufacturer and one retailer. Purchase cost for the manufacturer is dependent on inventory lot size, production cost of the manufacturer is dependent on production rate. Purchase cost of the retailer is dependent on demand rate of the customer. Idle time cost has been considered. Multi-item has been considered in this supply chain inventory model. Average cost in integrated inventory model has been calculated per unit time. The formulated problem has been solved by various techniques like as Fuzzy programming technique with hyperbolic membership functions (FPTHMF), Fuzzy non-linear programming technique (FNLP) and Fuzzy additive goal programming technique (FAGP), weighted Fuzzy non-linear programming technique (WFNLP) and weighted Fuzzy additive goal programming technique (WFAGP). A numerical example is provided to justify the proposed model. Finally graphical illustrations are considered and its sensitivity analysis is provided to test feasibility of the model.
Highlights
The supply chain inventory model deal with decision that minimum the total average cost or maximum the total average profit
A three layer multiple item production inventory model for multiple suppliers and retailers was formulated by Pal et al (2012)
An integrated production inventory model for a two echelon supply chain has been considered in which purchase cost for the manufacturer is dependent on inventory lot size, production cost of the manufacturer is dependent on production rate and Purchase cost of the retailer is dependent on demand rate of the customer
Summary
The supply chain inventory model deal with decision that minimum the total average cost or maximum the total average profit. Rau et al, (2003) studied on integrated inventory model for deteriorating items under a multi- echelon supply chain environment. Sridevi et al (2010) studied on inventory model for deteriorating items with Weibull rate of replenishment and selling price dependent demand. Shah et al, (2009) discussed on lot size inventory model for the Weibull distributed deterioration rate with discounted selling price and stock-dependent demand. Alfares and Ghaithan (2016) considered an inventory and pricing model with price-dependent demand, time-varying holding cost, and quantity discounts multi item is important in the inventory management system. Sadeghi (2015) discussed a multi-item integrated inventory model with different replenishment frequencies of retailers in a two-echelon supply chain management: a tuned-parameters hybrid meta-heuristic.
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