An analysis of production-inventory models with deteriorating items in a two-echelon supply chain |
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Authors: | Hung-Chi Chang |
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Institution: | Department of Distribution Management, National Taichung University of Science and Technology, Taichung 404, Taiwan |
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Abstract: | This paper revisits two previous studies that addressed the integrated production–inventory problem for deteriorating items in a two-echelon supply chain, where the item’s deterioration rate is a constant or follows a continuous probability distribution function. The aim of this study is to present an improved solution procedure to determine the delivery lot size and the number of deliveries per production batch cycle that minimizes the total cost of the entire supply chain. The performance of the proposed methodology is illustrated analytically and numerically. |
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Keywords: | Inventory Supply chain Probabilistic deterioration Arithmetic&ndash geometric mean method Marginal analysis |
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