Lead-time Dependent Ordering Cost Reduction and Trade-credit: A Supply Chain Model with Stochastic Demand and Rework
Monami Das Roy
Monami Das Roy*, Assistant Professor, Department of Mathematics, Haldia Government College, Purba Medinipur, India.
Manuscript received on January 05, 2020. | Revised Manuscript received on January 25, 2020. | Manuscript published on January 30, 2020. | PP: 5113-5117 | Volume-8 Issue-5, January 2020. | Retrieval Number: E7036018520/2020©BEIESP | DOI: 10.35940/ijrte.E7036.018520
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This study focuses on an integrated vendor-buyer supply chain model where the lead-time and ordering cost reduction act dependently. The lead time demand of a product follows a normal distribution. The manufacturing process is imperfect. During production run time, a certain percentage of defective products are produced, which are immediately reworked. Trade-credit financing has been taken into consideration. The goal of this study is to minimize the joint total expected cost by providing an inter-dependent reduction strategy of lead-time and ordering cost along with the determination of the optimal values of lead-time, number of deliveries, order lot size, ordering cost, lead-time crashing cost, and the joint total expected cost. A solution algorithm and a numerical example are presented to illustrate and establish the integrated model. This model can be used in textiles, automobiles and computers industries.
Keywords: Residual Strength, Reversal Direct Shear Test, Remolded and Undisturbed Soil Sample, Sample Loss, Shearing Rate.
Scope of the Article: Artificial Intelligent Methods, Models, Techniques.