A Modeling of Multi-Echelon Suppliers’ Chain for Deteriorating Items
Abstract
Inventory models for a policy of retail pricing and perishable items have been developed in many papers, but very few of the studies incorporate both of these effects. This study integrates the two conditions from a three-echelon supplier’s chain and offers a mathematical modeling for deteriorating inventory system with an optimal joint-cost policy. Exponentially deteriorating items with no shortages is assumed in this study. Two scenarios are considered. Scenario 1 assumed one supplier, one distributor and one retailer occurs at the regular inventory replenishment time, and scenario 2 assumes two suppliers, one distributor and two competitive retailers that to address this issue, we broaden the benchmark setting by letting the independent retailer channel be a duopoly. The mathematical model describes how the integrated approach to decision making can achieve global optimality as compared to independent decision by the suppliers, the distributor, and the retailers. A computer code is developed to derive the optimal solution. Numerical examples and sensitivity analysis are given to validate the results of the system.Metrics
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Â