Title: Modelling of single sourcing, multiperiod, multivendor, multibuyer based VMI

Authors: R. Dhanalakshmi, P. Parthiban, T. Arunkumar, P.D.D. Dominic

Addresses: D-Link India Ltd., Bangalore – 560068, India. ' Department of Production Engineering, National Institute of Technology, Tiruchirappalli – 620 015, India. ' School of Computing Sciences, Vellore Institute of Technology, Vellore – 14, India. ' Department of Computer and Information Sciences, Universiti Teknologi Petronas, 31750 Tronoh, Perak, Malaysia

Abstract: In many multistage manufacturing supply chains, transportation related costs are a significant portion of final product costs. It is often crucial for successful decision-making approaches in multistage manufacturing supply chains to explicitly account for non-linear transportation costs. We have explored this problem by considering a two-stage production-transportation. A two-stage supply chain that faces a deterministic stream of external demands for a single product is considered. A finite supply of raw materials and finite production at stage one has been assumed. Items are manufactured at stage one and transported to stage two, where the storage capacity of the warehouses is limited. Packaging is completed at stage two (that is, value is added to each item, but no new items are created) and the finished goods inventories are stored, which is used to meet the final demand of the buyers. During each period, the optimised production levels in stage one, as well as transportation levels between stage one and stage two and routing structure from the production vendor to warehouses and then to buyers, must be determined.

Keywords: linear interactive and discrete optimiser; LINDO; genetic algorithms; GAs; VMI; vendor managed inventory; manufacturing supply chains; transport costs; supply chain management; SCM.

DOI: 10.1504/IJENM.2009.029009

International Journal of Enterprise Network Management, 2009 Vol.3 No.2, pp.165 - 180

Published online: 21 Oct 2009 *

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