IDEAS home Printed from https://ideas.repec.org/a/spr/operea/v20y2020i1d10.1007_s12351-017-0311-z.html
   My bibliography  Save this article

A single-supplier, multi-buyer, multi-product VMI production-inventory system under partial backordering

Author

Listed:
  • Hadi Mokhtari

    (University of Kashan)

  • Mohammad Taghi Rezvan

    (University of Kashan)

Abstract

The vendor managed inventory (VMI) is an efficient coordination policy in supply chain management, in which supplier is responsible to manage inventory at the buyer and decides on replenishment policies. This paper presents a VMI model for a supply chain problem with a single supplier, multi-buyer and multi-product, via a production-inventory system in which shortage is allowed and partially backordered. In order to take into account the concern about environmental issues, the total green house gas emission is also considered as a green constraint. The aim is to find the appropriate values of production quantity and the maximum shortage level for all products of all buyers in such a way that the total cost of supply chain is minimized under VMI. The problem is formulated as a non-linear programming model and then a decomposition based analytical approach is proposed to solve it optimally. At the end, a numerical example is discussed to illustrate the proposed approach.

Suggested Citation

  • Hadi Mokhtari & Mohammad Taghi Rezvan, 2020. "A single-supplier, multi-buyer, multi-product VMI production-inventory system under partial backordering," Operational Research, Springer, vol. 20(1), pages 37-57, March.
    • Handle: RePEc:spr:operea:v:20:y:2020:i:1:d:10.1007_s12351-017-0311-z
    DOI: 10.1007/s12351-017-0311-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12351-017-0311-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12351-017-0311-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lee, Ching Chyi & Chu, Wai Hung Julius, 2005. "Who should control inventory in a supply chain?," European Journal of Operational Research, Elsevier, vol. 164(1), pages 158-172, July.
    2. San-José, Luis A. & Sicilia, Joaquín & García-Laguna, Juan, 2014. "Optimal lot size for a production–inventory system with partial backlogging and mixture of dispatching policies," International Journal of Production Economics, Elsevier, vol. 155(C), pages 194-203.
    3. Kristianto, Yohanes & Helo, Petri & Jiao, Jianxin (Roger) & Sandhu, Maqsood, 2012. "Adaptive fuzzy vendor managed inventory control for mitigating the Bullwhip effect in supply chains," European Journal of Operational Research, Elsevier, vol. 216(2), pages 346-355.
    4. Dong, Yan & Xu, Kefeng, 2002. "A supply chain model of vendor managed inventory," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(2), pages 75-95, April.
    5. Darwish, M.A. & Odah, O.M., 2010. "Vendor managed inventory model for single-vendor multi-retailer supply chains," European Journal of Operational Research, Elsevier, vol. 204(3), pages 473-484, August.
    6. Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    7. Disney, S. M. & Towill, D. R., 2003. "The effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains," International Journal of Production Economics, Elsevier, vol. 85(2), pages 199-215, August.
    8. Zavanella, Lucio & Zanoni, Simone, 2009. "A one-vendor multi-buyer integrated production-inventory model: The 'Consignment Stock' case," International Journal of Production Economics, Elsevier, vol. 118(1), pages 225-232, March.
    9. Pentico, David W. & Drake, Matthew J., 2011. "A survey of deterministic models for the EOQ and EPQ with partial backordering," European Journal of Operational Research, Elsevier, vol. 214(2), pages 179-198, October.
    10. Zugang Liu & Trisha Woolley & Anna Nagurney, 2006. "Optimal Endogenous Carbon Taxes for Electric Power Supply Chains with Power Plants," Computing in Economics and Finance 2006 322, Society for Computational Economics.
    11. Yu, Yugang & Wang, Zheng & Liang, Liang, 2012. "A vendor managed inventory supply chain with deteriorating raw materials and products," International Journal of Production Economics, Elsevier, vol. 136(2), pages 266-274.
    12. Pentico, David W. & Drake, Matthew J., 2009. "The deterministic EOQ with partial backordering: A new approach," European Journal of Operational Research, Elsevier, vol. 194(1), pages 102-113, April.
    13. Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    14. Ali Arkan & Taghi Rezvan & Seyed Reza Hejazi, 2011. "Supply chain coordination for minimisation of total cost with credit period approach," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 10(3), pages 290-306.
    15. Chang, Woojung & Ellinger, Alexander E. & Kim, Kyoungmi (Kate) & Franke, George R., 2016. "Supply chain integration and firm financial performance: A meta-analysis of positional advantage mediation and moderating factors," European Management Journal, Elsevier, vol. 34(3), pages 282-295.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mostafa Parsa & Ali Shahandeh Nookabadi & Zümbül Atan & Yaser Malekian, 2022. "An optimal inventory policy for a multi-echelon closed-loop supply chain of postconsumer recycled content products," Operational Research, Springer, vol. 22(3), pages 1887-1938, July.
    2. Jiseong Noh & Jong Soo Kim & Seung-June Hwang, 2020. "A Multi-Item Replenishment Problem with Carbon Cap-and-Trade under Uncertainty," Sustainability, MDPI, vol. 12(12), pages 1-15, June.
    3. Ghasemi, Elaheh & Lehoux, Nadia & Rönnqvist, Mikael, 2024. "A multi-level production-inventory-distribution system under mixed make to stock, make to order, and vendor managed inventory strategies: An application in the pulp and paper industry," International Journal of Production Economics, Elsevier, vol. 271(C).
    4. Katherinne Salas-Navarro & Paula Serrano-Pájaro & Holman Ospina-Mateus & Ronald Zamora-Musa, 2022. "Inventory Models in a Sustainable Supply Chain: A Bibliometric Analysis," Sustainability, MDPI, vol. 14(10), pages 1-21, May.
    5. Davide Castellano & Mosè Gallo & Liberatina C. Santillo, 2021. "A periodic review policy for a coordinated single vendor-multiple buyers supply chain with controllable lead time and distribution-free approach," 4OR, Springer, vol. 19(3), pages 347-388, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sadeghi, Javad & Mousavi, Seyed Mohsen & Niaki, Seyed Taghi Akhavan & Sadeghi, Saeid, 2014. "Optimizing a bi-objective inventory model of a three-echelon supply chain using a tuned hybrid bat algorithm," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 274-292.
    2. Roozbeh Nia, Ali & Hemmati Far, Mohammad & Akhavan Niaki, Seyed Taghi, 2014. "A fuzzy vendor managed inventory of multi-item economic order quantity model under shortage: An ant colony optimization algorithm," International Journal of Production Economics, Elsevier, vol. 155(C), pages 259-271.
    3. Rad, Reza Hosseini & Razmi, Jafar & Sangari, Mohamad Sadegh & Ebrahimi, Zahra Fallah, 2014. "Optimizing an integrated vendor-managed inventory system for a single-vendor two-buyer supply chain with determining weighting factor for vendor׳s ordering cost," International Journal of Production Economics, Elsevier, vol. 153(C), pages 295-308.
    4. Sarker, Bhaba R., 2014. "Consignment stocking policy models for supply chain systems: A critical review and comparative perspectives," International Journal of Production Economics, Elsevier, vol. 155(C), pages 52-67.
    5. Sainathan, Arvind & Groenevelt, Harry, 2019. "Vendor managed inventory contracts – coordinating the supply chain while looking from the vendor’s perspective," European Journal of Operational Research, Elsevier, vol. 272(1), pages 249-260.
    6. Fidel Torres & César García-Díaz, 2018. "Evolutionary dynamics of two-actor VMI-driven supply chains," Computational and Mathematical Organization Theory, Springer, vol. 24(3), pages 351-377, September.
    7. Lee, Jun-Yeon & Cho, Richard K., 2014. "Contracting for vendor-managed inventory with consignment stock and stockout-cost sharing," International Journal of Production Economics, Elsevier, vol. 151(C), pages 158-173.
    8. Pentico, David W. & Toews, Carl & Drake, Matthew J., 2015. "Approximating the EOQ with partial backordering at an exponential or rational rate by a constant or linearly changing rate," International Journal of Production Economics, Elsevier, vol. 162(C), pages 151-159.
    9. Taleizadeh, Ata Allah & Shokr, Iman & Konstantaras, Ioannis & VafaeiNejad, Mahyar, 2020. "Stock replenishment policies for a vendor-managed inventory in a retailing system," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    10. Darwish, M.A. & Odah, O.M., 2010. "Vendor managed inventory model for single-vendor multi-retailer supply chains," European Journal of Operational Research, Elsevier, vol. 204(3), pages 473-484, August.
    11. Sari, Kazim, 2008. "On the benefits of CPFR and VMI: A comparative simulation study," International Journal of Production Economics, Elsevier, vol. 113(2), pages 575-586, June.
    12. Fu Jia & Yan Jiang, 2018. "Sustainable Global Sourcing: A Systematic Literature Review and Bibliometric Analysis," Sustainability, MDPI, vol. 10(3), pages 1-26, February.
    13. Zhang, Ren-Qian, 2012. "An extension of partial backordering EOQ with correlated demand caused by cross-selling considering multiple minor items," European Journal of Operational Research, Elsevier, vol. 220(3), pages 876-881.
    14. Hossein Salehi & Ata Allah Taleizadeh & Reza Tavakkoli-Moghaddam, 2016. "An EOQ model with random disruption and partial backordering," International Journal of Production Research, Taylor & Francis Journals, vol. 54(9), pages 2600-2609, May.
    15. Hariga, Moncer & Hassini, Elkafi & Ben-Daya, Mohamed, 2014. "A note on generalized single-vendor multi-buyer integrated inventory supply chain models with better synchronization," International Journal of Production Economics, Elsevier, vol. 154(C), pages 313-316.
    16. Hosang Jung & Sukjae Jeong, 2018. "The Economic Effect of Virtual Warehouse-Based Inventory Information Sharing for Sustainable Supplier Management," Sustainability, MDPI, vol. 10(5), pages 1-19, May.
    17. Hesham K. Alfares & Ahmed M. Attia, 2017. "A supply chain model with vendor-managed inventory, consignment, and quality inspection errors," International Journal of Production Research, Taylor & Francis Journals, vol. 55(19), pages 5706-5727, October.
    18. Chao Fu & Weiyong Liu & Wenjun Chang, 2020. "Data-driven multiple criteria decision making for diagnosis of thyroid cancer," Annals of Operations Research, Springer, vol. 293(2), pages 833-862, October.
    19. Yu, Haiyan & Tang, Linglang & Xu, Yinfeng & Wang, Yong, 2015. "How much does VMI better than RMI in a global environment?," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 268-274.
    20. Aleksander Banasik & Jacqueline M. Bloemhof-Ruwaard & Argyris Kanellopoulos & G. D. H. Claassen & Jack G. A. J. Vorst, 2018. "Multi-criteria decision making approaches for green supply chains: a review," Flexible Services and Manufacturing Journal, Springer, vol. 30(3), pages 366-396, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:operea:v:20:y:2020:i:1:d:10.1007_s12351-017-0311-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.