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Replenishment and lead time decisions in manufacturer-retailer chains

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  • Hsu, Shu-Lu
  • Lee, Chun Chen

Abstract

This study investigates the decisions of replenishment and lead-time reduction for a single-manufacturer multiple-retailer integrated inventory system in which the probability distribution of demand for each retailer is unknown but its mean and variance are given. A decision model is presented and a minimax distribution free procedure is applied to determine the lead time, the common shipment cycle time, the target levels of replenishments and the number of shipments per production cycle so that the expected total system cost can be minimized. A decision support system has been implemented on a personal computer to illustrate the application of the model.

Suggested Citation

  • Hsu, Shu-Lu & Lee, Chun Chen, 2009. "Replenishment and lead time decisions in manufacturer-retailer chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(3), pages 398-408, May.
    • Handle: RePEc:eee:transe:v:45:y:2009:i:3:p:398-408
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    Citations

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    Cited by:

    1. Feng, Xuehao & Moon, Ilkyeong & Ryu, Kwangyeol, 2017. "Warehouse capacity sharing via transshipment for an integrated two-echelon supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 17-35.
    2. S. Hemapriya & R. Uthayakumar, 2017. "An inventory model with uncertain demand and lost sales reduction under service level constraint," 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(2), pages 1399-1418, November.
    3. 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.
    4. Sujit Kumar De & Shib Sankar Sana, 2018. "The (p, q, r, l) model for stochastic demand under Intuitionistic fuzzy aggregation with Bonferroni mean," Journal of Intelligent Manufacturing, Springer, vol. 29(8), pages 1753-1771, December.
    5. Zhai, Yue & Choi, Tsan-Ming & Shao, Saijun & Xu, Su Xiu & Huang, George Q., 2020. "Spatial-temporal hedging coordination in prefabricated housing production," International Journal of Production Economics, Elsevier, vol. 229(C).
    6. Heydari, Jafar, 2014. "Lead time variation control using reliable shipment equipment: An incentive scheme for supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 63(C), pages 44-58.
    7. Jian, Ming & Fang, Xin & Jin, Liu-qian & Rajapov, Azamat, 2015. "The impact of lead time compression on demand forecasting risk and production cost: A newsvendor model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 84(C), pages 61-72.
    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.
    9. K. F. Mary Latha & M. Ganesh Kumar & R. Uthayakumar, 2021. "Two echelon economic lot sizing problems with geometric shipment policy backorder price discount and optimal investment to reduce ordering cost," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 1133-1163, December.
    10. M. Vijayashree & R. Uthayakumar, 2016. "Two-echelon supply chain inventory model with controllable lead time," 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. 7(1), pages 112-125, December.
    11. Xiao, Tiaojun & Choi, Tsan-Ming & Cheng, T.C.E., 2016. "Delivery leadtime and channel structure decisions for make-to-order duopoly under different game scenarios," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 113-129.
    12. Shib Sana & Suresh Goyal, 2015. "$$(Q,r,L)$$ ( Q , r , L ) model for stochastic demand with lead-time dependent partial backlogging," Annals of Operations Research, Springer, vol. 233(1), pages 401-410, October.
    13. Heydari, Jafar & Mahmoodi, Mansour & Taleizadeh, Ata Allah, 2016. "Lead time aggregation: A three-echelon supply chain model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 215-233.

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