Title: Optimisation on a constrained integrated supply chain for multiple steel products with investment and freight cost discount

Authors: S. Tharani; R. Uthayakumar

Addresses: Department of Mathematics, G.T.N. Arts College, Dindigul, Tamil Nadu, India ' Department of Mathematics, The Gandhigram Rural Institute (Deemed to be University), Gandhigram, Tamil Nadu, India

Abstract: This paper intends to help the reader to understand a new inventory control model for steel products. This model introduces a steel marketing supply chain between a manufacturer and a merchant with multiple steel products. The purpose of this work is to influence a price discount on backorder for the merchant, ordering cost reduction and setup cost reduction, proceeding with the cogitation of discount on freight cost. We hold the freight cost to be a function of the order's quantity, and it is to be in the format of all-unit-discount costs. We thus assimilate freight costs into the system comprehensively and straightforwardly and have worked out the optimal solution procedures for working with the posed inventory model. A numerical example and sensitivity analyses are also carried out to demonstrate the study's implementations and performances.

Keywords: multiple steel products; investment; price discount; freight cost.

DOI: 10.1504/IJMOR.2023.128627

International Journal of Mathematics in Operational Research, 2023 Vol.24 No.1, pp.78 - 103

Received: 07 Sep 2021
Accepted: 24 Nov 2021
Published online: 31 Jan 2023 *