Abstract: The purpose of this paper is to develop a multi-product economic production quantity model under vendor management inventory policy and restrictions including limited warehouse space, budget, and number of orders, average shortage time and maximum permissible shortage. Since the “costs” cannot be predicted with certainty, it is assumed that data behave under uncertain environment. The problem is first formulated into the framework of a bi-objective of multi-product economic production quantity model. Then, the problem is solved with three multi-objective decision-making (MODM) methods. Then following this, three methods had been compared on information on the optimal value of the two objective functions and the central processing unit (CPU) time with the statistical analysis method and the multi-attribute decision-making (MADM). The results are compared with statistical analysis method and the MADM. The results of the study demonstrate that augmented-constraint in terms of optimal value of the two objective functions and the CPU time perform better than global criteria, and goal programming. Sensitivity analysis is done to illustrate the effect of parameter variations on the optimal solution. The contribution of this research is the use of random costs data in developing a multi-product economic production quantity model under vendor management inventory policy with several constraints.
Abstract: The market competition is moving from the single
firm to the whole supply chain because of increasing competition and
growing need for operational efficiencies and customer orientation.
Supply chain management allows companies to look beyond their
organizational boundaries to develop and leverage resources and
capabilities of their supply chain partners. This creates competitive
advantages in the marketplace and because of this SCM has acquired
strategic importance. Lean Approach is a management strategy that focuses on reducing
every type of waste present in an organization. This approach is
becoming more and more popular among supply chain managers. The supply chain application of lean approach is not frequent. In
particular, it is not well studied which are the impacts of lean
approach principles in a supply chain context. In literature there are
only few studies aimed at understanding the qualitative impact of the
lean approach in supply chains. Therefore, the goal of this research
work is to study the impacts of lean principles implementation along
a supply chain. To achieve this, a simulation model of a threeechelon
multi-product supply chain has been built. Kanban system (and several priority policies) and setup time
reduction degrees are implemented in the lean-configured supply
chain to apply pull and lot-sizing decrease principles respectively. To
evaluate the benefits of lean approach, lean supply chain is compared
with an EOQ-configured supply chain. The simulation results show
that Kanban system and setup-time reduction improve inventory
stock level. They also show that logistics efforts are affected to lean
implementation degree. The paper concludes describing
performances of lean supply chain in different contexts.
Abstract: Globalization is putting enormous pressure on the business organizations specially manufacturing one to rethink the supply chain in innovative manners. Inventory consumes major portion of total sale revenue. Effective and efficient inventory management plays a vital role for the successful functioning of any organization. Selection of inventory policy is one of the important purchasing activities. This paper focuses on selection and ranking of alternative inventory policies. A deterministic quantitative model based on Distance Based Approach (DBA) method has been developed for evaluation and ranking of inventory policies. We have employed this concept first time for this type of the selection problem. Four inventory policies economic order quantity (EOQ), just in time (JIT), vendor managed inventory (VMI) and monthly policy are considered. Improper selection could affect a company’s competitiveness in terms of the productivity of its facilities and quality of its products. The ranking of inventory policies is a multi-criteria problem. There is a need to first identify the selection criteria and then processes the information with reference to relative importance of attributes for comparison. Criteria values for each inventory policy can be obtained either analytically or by using a simulation technique or they are linguistic subjective judgments defined by fuzzy sets, like, for example, the values of criteria. A methodology is developed and applied to rank the inventory policies.