The economic lot-size scheduling problem with equally sized batch shipment policy and stochastic demands Online publication date: Thu, 02-Apr-2015
by Wen-Tsung Ho; Yu-Chi Tseng; Yu-Cheng Hsiao
European J. of Industrial Engineering (EJIE), Vol. 9, No. 2, 2015
Abstract: This study investigates economic lot-size scheduling problem (ELSP) comprising stochastic demand and equally sized batch shipment policy in a one-supplier multi-buyer integrated inventory model. All buyers have agreed on a joint replenishment policy with a common replenishment cycle (CRC). Equally sized batch shipment scheduling policy for each product in one CRC is applied to the whole system. The objective is to determine the optimal common replenishment cycle and the numbers of batch-shipment for each product, all of which minimises the integrated total cost. Moreover, a new concept is introduced; namely, critical replenishment cycle. The replenishment cycle division (RCD) and recursive tightening (RT) methods are then developed to obtain the optimal solutions to the subject problem. Two theorems are verified to ensure that the solution of ELSP involving equally sized batch shipment and stochastic demand model with the CRC policy obtained by the RCD and RT methods reaches the global optimum. An example is presented to illustrate the procedures involved in the RCD and RT methods. [Received 5 March 2013; Revised 25 September 2013; Revised 3 December 2013; Accepted 11 December 2013]
Online publication date: Thu, 02-Apr-2015
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the European J. of Industrial Engineering (EJIE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com