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A joint optimal policy for a multiple-suppliers multiple-manufacturers multiple-retailers system

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  • Sajadieh, Mohsen S.
  • Fallahnezhad, Mohammad Saber
  • Khosravi, Maryam

Abstract

This paper considers an integrated production–inventory model for a three-stage supply chain involving multiple suppliers, multiple manufacturers and multiple retailers. The suppliers/manufacturers produce the raw materials/final goods at a finite rate and deliver the materials/goods in a number of batches to the manufacturers/retailers. We analyze the problem where the lead times from the manufacturers to the retailers are stochastic and shortage is allowed. We also explicitly include the transportation costs from the manufacturers to the retailers into the model. The numerical analysis shows that the coordination mechanism employed is more beneficial for the cases with less unpredictable lead times, lower shortage prices, and no transportation cost.

Suggested Citation

  • Sajadieh, Mohsen S. & Fallahnezhad, Mohammad Saber & Khosravi, Maryam, 2013. "A joint optimal policy for a multiple-suppliers multiple-manufacturers multiple-retailers system," International Journal of Production Economics, Elsevier, vol. 146(2), pages 738-744.
    • Handle: RePEc:eee:proeco:v:146:y:2013:i:2:p:738-744
    DOI: 10.1016/j.ijpe.2013.09.002
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    References listed on IDEAS

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    Cited by:

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    2. Muhammad Waqas Iqbal & Muhammad Babar Ramzan & Asif Iqbal Malik, 2022. "Food Preservation within Multi-Echelon Supply Chain Considering Single Setup and Multi-Deliveries of Unequal Lot Size," Sustainability, MDPI, vol. 14(11), pages 1-30, June.
    3. Islam, S.M. Shahidul & Hoque, Md. Abdul & Hamzah, Norhayati, 2017. "Single-supplier single-manufacturer multi-retailer consignment policy for retailers’ generalized demand distributions," International Journal of Production Economics, Elsevier, vol. 184(C), pages 157-167.
    4. Hlioui, Rached & Gharbi, Ali & Hajji, Adnène, 2015. "Replenishment, production and quality control strategies in three-stage supply chain," International Journal of Production Economics, Elsevier, vol. 166(C), pages 90-102.
    5. Sajadieh, Mohsen S. & Larsen, Christian, 2015. "A coordinated manufacturer-retailer model under stochastic demand and production rate," International Journal of Production Economics, Elsevier, vol. 168(C), pages 64-70.

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