Preservation effort effects on retailers and manufacturers in integrated multi-deteriorating item discrete supply chain model

Abstract

This paper studies the multi-deteriorating item discrete supply chain to realize considerable savings by aggregating the replenishment. The present integrated replenishment policy has already been widely applied in a variety of industries. This study deals with an integrated multi-deteriorating item replenishment problem with preservation effort and discrete demand rate and discrete order quantity. Most existing studies about preservation effort focused on a single-item replenishment policy. However, integrated replenishment has been extensively applied in many industries to take advantage of economies of scale in preservation. Since it is difficult to solve this problem directly, the necessary and sufficient conditions with these properties are derived; a solution procedure and an algorithm using heuristic approach are developed to obtain the optimal solutions. Numerical examples, comparative analysis and sensitivity analyses are also provided and tested to elucidate the multi-deteriorating item discrete supply chain model with preservation efforts. The results reveal that the extensions of the model provide a wider and reasonable situation in practice, so that the annual channel profit can be maximized.