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A multi-echelon supply chain model for reworkable items in multiple-markets with supply disruption

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  • Pal, Brojeswar
  • Sana, Shib Sankar
  • Chaudhuri, Kripasindhu

Abstract

The objective of this paper is to develop a multi-echelon supply chain model for multiple-markets with different selling seasons. Here, two suppliers are involved to supply the raw materials to the manufacturer where the main supplier may face supply disruption after a random time and the secondary supplier is perfectly reliable but more expensive than the main supplier. In this article, the manufacturer produces a random proportion of defective items which are reworked after regular production and are sold in a lot to another market just after completion of rework. The retailer sells the finished products in different markets according to seasons. Finally, an integrated expected cost per unit product of the chain is minimized analytically by considering the lot-size ordered as a decision variable. An appropriate numerical example is also provided to justify the proposed model.

Suggested Citation

  • Pal, Brojeswar & Sana, Shib Sankar & Chaudhuri, Kripasindhu, 2012. "A multi-echelon supply chain model for reworkable items in multiple-markets with supply disruption," Economic Modelling, Elsevier, vol. 29(5), pages 1891-1898.
    • Handle: RePEc:eee:ecmode:v:29:y:2012:i:5:p:1891-1898
    DOI: 10.1016/j.econmod.2012.06.005
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    References listed on IDEAS

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    3. Chiu, Yuan-Shyi Peter & Chen, Yung-Chung & Lin, Hong-Dar & Chang, Huei-Hsin, 2014. "Combining an improved multi-delivery policy into a single-producer multi-retailer integrated inventory system with scrap in production," Economic Modelling, Elsevier, vol. 39(C), pages 163-167.
    4. Sher, Mikhail M. & Kim, Seung-Lae & Banerjee, Avijit & Paz, Michael T., 2018. "A supply chain coordination mechanism for common items subject to failure in the electronics, defense, and medical industries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 164-173.
    5. Ashoke Kumar Bera & Dipak Kumar Jana, 2017. "Multi-item imperfect production inventory model in Bi-fuzzy environments," OPSEARCH, Springer;Operational Research Society of India, vol. 54(2), pages 260-282, June.
    6. Ali, Syed Mithun & Rahman, Md. Hafizur & Tumpa, Tasmia Jannat & Moghul Rifat, Abid Ali & Paul, Sanjoy Kumar, 2018. "Examining price and service competition among retailers in a supply chain under potential demand disruption," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 40-47.
    7. Sanjoy Kumar Paul & Sobhan Asian & Mark Goh & S. Ali Torabi, 2019. "Managing sudden transportation disruptions in supply chains under delivery delay and quantity loss," Annals of Operations Research, Springer, vol. 273(1), pages 783-814, February.
    8. Sanjoy Kumar Paul & Ruhul Sarker & Daryl Essam, 2018. "A reactive mitigation approach for managing supply disruption in a three-tier supply chain," Journal of Intelligent Manufacturing, Springer, vol. 29(7), pages 1581-1597, October.
    9. Song, Dong-Ping & Dong, Jing-Xin & Xu, Jingjing, 2014. "Integrated inventory management and supplier base reduction in a supply chain with multiple uncertainties," European Journal of Operational Research, Elsevier, vol. 232(3), pages 522-536.
    10. Faiza Hamdi & Ahmed Ghorbel & Faouzi Masmoudi & Lionel Dupont, 2018. "Optimization of a supply portfolio in the context of supply chain risk management: literature review," Journal of Intelligent Manufacturing, Springer, vol. 29(4), pages 763-788, April.
    11. Biswajit Sarkar & Bikash Koli Dey & Mitali Sarkar & Ali AlArjani, 2021. "A Sustainable Online-to-Offline (O2O) Retailing Strategy for a Supply Chain Management under Controllable Lead Time and Variable Demand," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    12. A. Thangam, 2017. "Retailer’s optimal replenishment policy in a two-echelon supply chain under two-part delay in payments and disruption in delivery," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(1), pages 26-46, January.
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