Production and shipment policy under dynamic demand in the supply chain environments
by Ik Sun Lee
International Journal of Applied Management Science (IJAMS), Vol. 8, No. 1, 2016

Abstract: This paper considers an integrated multi-product (1:N) inventory model where a manufacturer produces multiple products via a cyclic production and supplies them to N buyers. The objective is to establish a production and delivery planning under the sequence of dynamic demands at the minimum total cost of the entire system (manufacturer and multiple buyers) subject to some constraints of the range on the product delivery interval between each buyer and the manufacturer. Some solution properties are characterised, with which a heuristic solution algorithm is derived. Computational experiments with numerical problems show that the heuristic algorithm finds good solutions within a reasonable time.

Online publication date: Wed, 23-Mar-2016

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