Title: Common replenishment cycle with mixed batch shipment policy for a single-vendor multi-buyer integrated system

Authors: Chui-Yu Chiu; Yi Lin; Dwan-Fang Sheu; Wen-Tsung Ho

Addresses: Industrial Engineering and Management Department, National Taipei University of Technology, No. 1, Sec. 3, Chung-hsiao E. Rd. (10608), Taipei City, Taiwan ' Graduate Institute of Industrial Engineering and Management, National Taipei University of Technology, No. 1, Sec. 3, Chung-hsiao E. Rd. (10608), Taipei City, Taiwan; Department of Business Administration, TakMing University of Science and Technology, No. 56, Sec. 1, Huanshan Rd., Neihu District (11451), Taipei City, Taiwan ' Department of Logistics Management, Takming University of Science and Technology, No. 56, Sec. 1, Huanshan Rd., Neihu District (11451), Taipei City, Taiwan ' Department of Business Administration, Takming University of Science and Technology, No. 56, Sec. 1, Huanshan Rd., Neihu District (11451), Taipei City, Taiwan

Abstract: This study addresses a single-vendor multi-buyer integrated system with a common replenishment cycle and a mixed batch shipment policy. The objective is to determine the common replenishment cycle, number of shipments and the structure of the mixed batch shipment which minimises the integrated total cost per unit time. The isolation model is constructed first, and then the isolation model is integrated into the integration model. The minimum total cost model is transformed into a maximum replenishment cycle model to optimise the structure of the mixed batch shipment. Moreover, two new concepts are introduced, namely domination curve and critical replenishment cycle. A new method, the replenishment cycle division method, is then developed to derive the optimal solutions to the subject problem. Examples are presented to illustrate the procedures involved in the replenishment cycle division method. [Received 2 February 2011; Accepted 13 September 2012]

Keywords: inventory modelling; common replenishment cycle; replenishment cycle division; mixed batch shipments; batch shipment policy; single-vendor multi-buyer systems; domination curve; critical replenishment cycle.

DOI: 10.1504/EJIE.2014.060435

European Journal of Industrial Engineering, 2014 Vol.8 No.2, pp.168 - 192

Published online: 28 Jun 2014 *

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