Currently many companies are interested in reduction of the carbon emissions associated with their supply chain activities such as transportation and operations. Operational decisions, such as modifications in order quantities could an effective way in reducing carbon emissions in the supply chain. Cap-and-trade regulation, sometimes called emissions trading, is a market-based tool to limit greenhouse gas emissions. Under cap-and-trade regulation, emission credits are allocated to the firms and the firms trades emissions under cap-and-trade schemes. In this paper, we propose a single-manufacturer single-buyer two-echelon supply chain problem under the cap-and-trade mechanism incorporating the carbon emissions caused by transportation and warehousing activities where a single manufacturer produces a family of items in order to deliver a family of items to a single buyer at a fixed interval of time for effective implementation of Just-In-Time (JIT) Purchasing. An integrated multi-product lot-splitting model of facilitating multiple shipments in small lots between buyer and manufacturer is developed in a JIT Purchasing environment. Also, an iterative heuristic algorithm is developed to derive the common order interval, the number of intervals for each product and the number of shipments between the buyer and the manufacturer during the common interval. A numerical example is given to illustrate the savings in reduction of total cost and carbon emissions by the inventory model incorporating cap-and-trade mechanism compared to the classical inventory model. The proposed inventory model could be useful for the practical solution of two-echelon supply chain inventory problem under cap-and-trade mechanism.

In pursuing carbon emission reduction efforts, companies have focused for the most part on reducing emissions due to the more efficient equipment and facilities. However they overlook a significant source of carbon emissions, one that is driven by operational policies. Currently companies are looking for solutions to reduce carbon emissions associated with their operations. Operational adjustments, such as modifications in order quantities could an effective way in reducing carbon emissions in the supply chain. Also, Cap-and-Trade mechanism is generally accepted as on of the most effective market-based mechanism to reduce carbon emissions. In this paper, we investigate a supply chain with single manufacturer and multiple retailers multi-product inventory model under the cap-and-trade system incorporating the carbon emissions caused by transportation and warehousing activities. Also, we provide an iterative solution algorithm and derive the common order interval and the number of intervals for each product. We show by numerical example that the inventory model incorporating cap & trade mechanism can reduce total cost and carbon emissions compared to the classical inventory model. Using the numerical examples, we also investigates different carbon price on the performance of the inventory model.

In order to remove the inefficient cost occurred among companies, the cooperation among companies are required. The single vendor-single buyer integrated model is often studied for that purpose. Buyer’s demand follows normal distribution, and vendor’s inventory policy use a continuous inventory review policy. If buyer places order, then vendor begins to make products and transfer those products to the buyer several times. In real situation, the size of company’s warehouse is restricted, space limit constraint is considered. There are three approaches for the single vendor-single buyer integrated model with space limit: equal batch shipment approach, increasing batch shipment approach, and mixed approach. In this paper, these approaches are compared one another and we discuss about the advantages and disadvantages of these approaches.

본 연구는 공급자(supplier), 중간공급자(distributor) 그리고 고객(customer)으로 구성된 2 단계 공급사슬에서 퇴화성 제품(deteriorating products)에 대한 중간공급자의 재고모형을 분석하였다. 문제 분석을 위해 공급자는 중간공급자의 수요 증대를 목적으로 중간공급자의 주문 크기에 따라 차별적으로 외상 기간을 허용하고, 최종 고객의 수요는 중간공급자의 재고 수준에 따라 선형적(linearly)으로 증가한다는 가정 하에 모형을 분석하였다. 중간공급자의 이익을 최대화하는 경제적 주문량 결정 방법을 제시하였고, 예제를 통하여 그 해법의 타당성을 보였으며, 민감도 분석을 통하여 퇴화율이 재고정책에 미치는 영향을 분석하였다.

This paper is to analyze an integrated production and inventory model in a single-vendor multi-buyer supply chain. The vendor is defined as the manufacturer and the buyers as the retailers. The product that the manufacturer produces is supplied to the retailers with constant periodic time interval. The production rate of the manufacturer is constant for the time. The demand of the retailers is constant for the time. The cycle time of the vendor is defined as the elapsed time from the start of the production to the start of the next production, while the cycle times of the buyer as the elapsed time between the adjacent supply times from the vendor to the buyer. The cycle times of the vendor and the buyers that minimizes the total cost in a supply chain are analyzed. The cost factors are the production setup cost and the inventory holding cost of the manufacturer, the ordering cost and the inventory holding cost of the retailers. The cycle time of the vendor is investigated through the cycle time that satisfies economic production quantity with the production setup cost and the inventory holding cost of the manufacturer. An integrated production and inventory model is formulated, and an algorithm is developed. An numerical example is presented to explain the algorithm. The solution of the algorithm for the numerical examples is compared with that of genetic algorithm. Numerical example shows that the vendor and the buyers can save cost by integrated decision making.

In this paper, we investigate an inventory and production system in a three-layer supply chain system involving a single supplier, single manufacturer and multiple retailers. Earlier study in this type of supply chain only consider a single raw material in order to produce single item, but we consider raw materials in order to produce multiple items. It is assumed that the cycle time at each stage is an integer multiple of the adjacent downstream stage. We develop an iterative solution procedure to find the order quantity for the multiple items and raw materials that minimizes the supply chain-wide total cost per unit time of the supplier and manufacturer’s raw materials ordering and holding, setup and finished items holding, the retailer’s ordering and inventory holding. Numerical examples are presented to show that the proposed heuristic gives good performance.

Many retailer store managers are experiencing the situation where some customers balk at purchasing products if the stock is low. In this paper, we extend the single period newsvendor model in an environment of customer balking behavior occurring at double threshold inventory levels assuming the chance of sales during balking is a discrete function of inventory level. Our analysis is based on the assumption that only the mean and the variance of demand are known, without assuming any specific distributional form. We derive the explicit general expression of optimal order quantity with unknown distribution of demand with double threshold inventory levels of customer balking. Then, we illustrate the concepts developed here through simple numerical examples and conclude the future research topics under balking situation.

In this paper, we consider a single-manufacturer single-buyer supply chain problem where a single manufacturer purchases and processes raw materials into a family of items in order to deliver a family of items to a single buyer at a fixed interval of time for effective implementation of Just-In-Time Purchasing. An integrated multi-item lot-splitting model of facilitating multiple shipments in small lots between buyer and manufacturer is developed in a JIT Purchasing environment. Previous research on the integrated model assumed that the manufacturer orders raw materials m (integer) times for every production run (lot multiplier policy for the raw material). In this paper, we consider a generalized policy in the replenishment of raw materials, allowing lot multiplier policy and lot splitting policy. An iterative solution procedure is developed to find the order interval for finished goods and raw materials, and number of shipments between buyer and manufacturer. We show by numerical example that when the integrated policy is adopted by both buyer and manufacturer in a cooperative manner, both parties can benefit.

본 논문은 (1 : 1 : N) 재고모형에 대한 복수제품의 순환생산 및 배송 일정계획을 수립하는 연구를 수행하였다. 세부적으로 공급자가 원자재를 생산자에게 배송하면, 생산자는 순환생산방식을 활용하여 복수의 제품을 생산하여 N 구매자에게 배송하는 상황을 고려하고 있다. 본 연구의 목적은 공급자, 생산자, 구매자를 포함하는 시스템 전체의 비용을 최소화하는 계획을 수립하는 것이다. 최적해가 가지는 몇 가지 특성들을 분석하고, 이를 통해서 단계적인 휴리스틱 절

This paper proposes a computation model of the quantity supplied to optimize inventory costs for the fast fashion. The model is based on a forecasting, a store and production capacity, an assortment planning and quick response model for fast fashion retai

Lee[15] examined quantity discount contracts between a manufacturer and a retailer in a stochastic, two-period inventory model where quantity discounts are provided based on the previous order size During the two periods, the retailer faces stochastic(tru

In this paper, we consider a single-vendor single-buyer supply chain problem where a single vendor order raw materials from its supplier, then using its manufacturing processes converts the raw materials to finished goods in order to deliver finished good

본 연구는 공급자(supplier), 중간분배자(retailer/distributor) 그리고 고객(customer)으로 구성된 2 단계 공급사슬을 대상으로 공급자가 수요 증대를 목적으로 중간분배자에게 일정기간 동안 제품대금에 대한 지불 연기를 허용한다는 가정 하에 중간분배자의 최적 재고정책 결정을 위한 재고 모형을 다루었다. 소비성 상품의 경우, 고객의 수요는 일반적으로 상품 진열대에 진열되어있는 상품의 재고량에 많은 영향을 받는 것으로 알려져 있다.

본 연구는 공급자, 중간분배자 그리고 고객으로 구성된 2 단계 공급사슬에서 시간에 따라 일정률로 퇴화하는 퇴화성 제품을 취급하는 중간분배자의 경제적 재고모형을 분석하였다. 문제 분석을 위하여 공급자는 고객으로부터의 수요를 증대시키기 위한 수단으로 일정한 묶음 단위별로 일정한 양의 덤을 제공한다는 가정 하에 재고모형을 설계하였고, 모형 분석을 통하여 이익을 최대화하는 경제적 주문량 결정 방법을 제시하였다. 또한 예제를 통하여 제시된 해법을 적용하고, 그

  In this paper, we consider an inventory system where a single supplier purchases and processes raw materials into finished goods in order to deliver finished goods to a single buyer for effective implementation of Just-In-Time Purchasing. An integrated

A number of stores can save costs by forming a centralized inventory system. The number and location of centralized warehouses can be determined in minimizing total costs and then these cost reductions should be allocated fairly to each store. If no group of stores feel that they are paying to subsidize to the complementary set of stores, then that cost allocation is in core. That is, all stores become better off by forming a group. This study shows that there does not exist the core in some examples. Hence, we suggest a framework for the cost allocation both of the case in which the core exists and the core does not exist.

A centralized inventory system provides a number of stores with cost reduction, information sharing. To build centralized warehouses, two things should be considered: how many warehouses are required and where these are located. The number and location of centralized warehouses can be determined in minimizing total costs and then these cost reductions should be allocated fairly to each store. Since it is too time-intensive to find an optimal solution of minimizing total costs, this paper presents heuristics and compares its results with an optimal solution.

A centralized inventory system provides a number of stores with cost reduction, information sharing. To build centralized warehouses, two things should be considered: how many warehouses are required and where these are located. The number and location of centralized warehouses can be determined in minimizing total costs and then these cost reductions should be allocated fairly to each store. Since it is too time-intensive to find an optimal solution of minimizing total costs, this paper presents heuristics and compares its results with an optimal solution.