Title: Two-echelon supply chain inventory model with variable lead time and ramp-type demand for deterioration item under bi-level credit period
Authors: Dipak Barman; Barun Das
Addresses: Department of Mathematics, Sidho-Kanho-Birsha University, Purulia-723104, India ' Department of Mathematics, Sidho-Kanho-Birsha University, Purulia-723104, India
Abstract: Here, a two-echelon supply chain inventory problem consisting of a vendor and a buyer is considered for a deteriorating item. In the system, the buyer receives an opportunity of trade credit from the vendor and simultaneously the buyer offers a credit period to the customers. The buyer's inventory model includes stochastic lead time following a normal distribution and the buyer sells the item to the customer with a more realistic ramp-type demand rate. The vendor produces the goods to maintain the supply to the buyer. The purpose of this study is to minimise the total cost for different sub-cases. The problem is optimised through the soft computing technique namely, genetic algorithm and different types of convexity has been tested here. Finally, this model is discussed with numerical examples.
Keywords: vendor-buyer integrated inventory system; stochastic lead time; ramp-type demand; deterioration; bi-level credit policy; genetic algorithm.
International Journal of Inventory Research, 2021 Vol.6 No.1, pp.14 - 46
Received: 18 Jul 2019
Accepted: 01 Apr 2020
Published online: 12 Mar 2021 *