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Optimal production plans and shipment schedules in a supply-chain system with multiple suppliers and multiple buyers

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  • Sarker, Bhaba R.
  • Diponegoro, Ahmad

Abstract

This research addresses an optimal policy for production and procurement in a supply-chain system with multiple non-competing suppliers, a manufacturer and multiple non-identical buyers. The manufacturer procures raw materials from suppliers, converts them to finished products and ships the products to each buyer at a fixed-interval of time over a finite planning horizon. The demand of finished product is given by buyers and the shipment size to each buyer is fixed. The problem is to determine the production start time, the initial and ending inventory, the cycle beginning and ending time, the number of orders of raw materials in each cycle, and the number of cycles for a finite planning horizon so as to minimize the system cost. A surrogate network representation of the problem developed to obtain an efficient, optimal solution to determine the production cycle and cycle costs with predetermined shipment schedules in the planning horizon. This research prescribes optimal policies for a multi-stage production and procurements for all shipments scheduled over the planning horizon. Numerical examples are also provided to illustrate the system.

Suggested Citation

  • Sarker, Bhaba R. & Diponegoro, Ahmad, 2009. "Optimal production plans and shipment schedules in a supply-chain system with multiple suppliers and multiple buyers," European Journal of Operational Research, Elsevier, vol. 194(3), pages 753-773, May.
    • Handle: RePEc:eee:ejores:v:194:y:2009:i:3:p:753-773
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    3. Wu, Kan & Yuan, Xue-Ming, 2016. "Optimal production-inventory policy for an integrated multi-stage supply chain with time-varying demandAuthor-Name: Zhao, Shi Tao," European Journal of Operational Research, Elsevier, vol. 255(2), pages 364-379.
    4. Liang, Wen Yau & Huang, Chun-Che & Lin, Yin-Chen & Chang, Tsun Hsien & Shih, Meng Hao, 2013. "The multi-objective label correcting algorithm for supply chain modeling," International Journal of Production Economics, Elsevier, vol. 142(1), pages 172-178.
    5. Zhai, Yue & Cheng, T.C.E., 2022. "Lead-time quotation and hedging coordination in make-to-order supply chain," European Journal of Operational Research, Elsevier, vol. 300(2), pages 449-460.
    6. Glock, Christoph H., 2012. "Coordination of a production network with a single buyer and multiple vendors," International Journal of Production Economics, Elsevier, vol. 135(2), pages 771-780.
    7. Qiu, Xuan & Huang, George Q., 2016. "Transportation service sharing and replenishment/delivery scheduling in Supply Hub in Industrial Park (SHIP)," International Journal of Production Economics, Elsevier, vol. 175(C), pages 109-120.
    8. Glock, Christoph H., 2012. "The joint economic lot size problem: A review," International Journal of Production Economics, Elsevier, vol. 135(2), pages 671-686.

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