Table of Contents Author Guidelines Submit a Manuscript
Mathematical Problems in Engineering
Volume 2017, Article ID 6465912, 14 pages
https://doi.org/10.1155/2017/6465912
Research Article

Supply Chain Model with Stochastic Lead Time, Trade-Credit Financing, and Transportation Discounts

Department of Industrial & Management Engineering, Hanyang University, Ansan, Gyeonggi-do 15588, Republic of Korea

Correspondence should be addressed to Biswajit Sarkar; moc.liamg@rakrastijawsibsb

Received 26 October 2016; Revised 22 January 2017; Accepted 14 February 2017; Published 18 May 2017

Academic Editor: Mohammad D. Aliyu

Copyright © 2017 Sung Jun Kim and Biswajit Sarkar. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Linked References

  1. R. Uthayakumar and S. Priyan, “Permissible delay in payments in the two-echelon inventory system with controllable setup cost and lead time under service level constraint,” International Journal of Information and Management Sciences, vol. 24, no. 3, pp. 193–211, 2013. View at Google Scholar · View at MathSciNet · View at Scopus
  2. E. L. Porteus, “Investing in reduced setups in the EOQ model,” Management Science, vol. 31, no. 8, pp. 998–1010, 1985. View at Publisher · View at Google Scholar
  3. L.-Y. Ouyang, C.-K. Chen, and H.-C. Chang, “Lead time and ordering cost reductions in continuous review inventory systems with partial backorders,” Journal of the Operational Research Society, vol. 50, no. 12, pp. 1272–1279, 1999. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  4. Y. Y. Woo, S.-L. Hsu, and S. Wu, “An integrated inventory model for a single vendor and multiple buyers with ordering cost reduction,” International Journal of Production Economics, vol. 73, no. 3, pp. 203–215, 2001. View at Publisher · View at Google Scholar · View at Scopus
  5. H.-C. Chang, L.-Y. Ouyang, K.-S. Wu, and C.-H. Ho, “Integrated vendor-buyer cooperative inventory models with controllable lead time and ordering cost reduction,” European Journal of Operational Research, vol. 170, no. 2, pp. 481–495, 2006. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  6. T. Zhang, L. Liang, Y. Yu, and Y. Yu, “An integrated vendor-managed inventory model for a two-echelon system with order cost reduction,” International Journal of Production Economics, vol. 109, no. 1-2, pp. 241–253, 2007. View at Publisher · View at Google Scholar · View at Scopus
  7. D. Shin, R. Guchhait, B. Sarkar, and M. Mittal, “Controllable lead time, service level constraint, and transportation discounts in a continuous review inventory model,” RAIRO Operations Research, vol. 50, no. 4-5, pp. 921–934, 2016. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at MathSciNet
  8. C.-K. Huang, “An integrated inventory model under conditions of order processing cost reduction and permissible delay in payments,” Applied Mathematical Modelling, vol. 34, no. 5, pp. 1352–1359, 2010. View at Publisher · View at Google Scholar · View at MathSciNet · View at Scopus
  9. B. Sarkar, “An EOQ model with delay in payments and stock dependent demand in the presence of imperfect production,” Applied Mathematics and Computation, vol. 218, no. 17, pp. 8295–8308, 2012. View at Publisher · View at Google Scholar · View at MathSciNet · View at Scopus
  10. R. Ganeshan, “Managing supply chain inventories: a multiple retailer, one warehouse, multiple supplier model,” International Journal of Production Economics, vol. 59, no. 1, pp. 341–354, 1999. View at Publisher · View at Google Scholar · View at Scopus
  11. B. Sarkar, S. Saren, D. Sinha, and S. Hur, “Effect of unequal lot sizes, variable setup cost, and carbon emission cost in a supply chain model,” Mathematical Problems in Engineering, vol. 2015, Article ID 469486, 13 pages, 2015. View at Publisher · View at Google Scholar · View at MathSciNet · View at Scopus
  12. B. Sarkar, B. Ganguly, M. Sarkar, and S. Pareek, “Effect of variable transportation and carbon emission in a three-echelon supply chain model,” Transportation Research Part E: Logistics and Transportation Review, vol. 91, pp. 112–128, 2016. View at Publisher · View at Google Scholar · View at Scopus
  13. G. P. Kiesmüller, A. G. de Kok, and J. C. Fransoo, “Transportation mode selection with positive manufacturing lead time,” Transportation Research Part E: Logistics and Transportation Review, vol. 41, no. 6, pp. 511–530, 2005. View at Publisher · View at Google Scholar · View at Scopus
  14. K. Ertogral, M. Darwish, and M. Ben-Daya, “Production and shipment lot sizing in a vendor-buyer supply chain with transportation cost,” European Journal of Operational Research, vol. 176, no. 3, pp. 1592–1606, 2007. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  15. J.-H. Kang and Y.-D. Kim, “Coordination of inventory and transportation managements in a two-level supply chain,” International Journal of Production Economics, vol. 123, no. 1, pp. 137–145, 2010. View at Publisher · View at Google Scholar · View at Scopus
  16. K.-J. Chung, “The integrated inventory model with the transportation cost and two-level trade credit in supply chain management,” Computers &; Mathematics with Applications, vol. 64, no. 6, pp. 2011–2033, 2012. View at Publisher · View at Google Scholar · View at MathSciNet · View at Scopus
  17. L.-Y. Ouyang, C.-K. Chen, and H.-C. Chang, “Quality improvement, setup cost and lead-time reductions in lot size reorder point models with an imperfect production process,” Computers and Operations Research, vol. 29, no. 12, pp. 1701–1717, 2002. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  18. B. Sarkar and I. Moon, “Improved quality, setup cost reduction, and variable backorder costs in an imperfect production process,” International Journal of Production Economics, vol. 155, pp. 204–213, 2014. View at Publisher · View at Google Scholar · View at Scopus
  19. S. H. Yoo, D. Kim, and M.-S. Park, “Lot sizing and quality investment with quality cost analyses for imperfect production and inspection processes with commercial return,” International Journal of Production Economics, vol. 140, no. 2, pp. 922–933, 2012. View at Publisher · View at Google Scholar · View at Scopus
  20. S. K. Goyal, “Economic order quantity under conditions of permissible delay in payments,” Journal of the Operational Research Society, vol. 36, no. 4, pp. 335–338, 1985. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  21. S. P. Aggarwal and C. K. Jaggi, “Ordering policies of deteriorating items under permissible delay in payments,” Journal of the Operational Research Society, vol. 46, no. 5, pp. 658–662, 1995. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  22. A. M. M. Jamal, B. R. Sarker, and S. Wang, “An ordering policy for deteriorating items with allowable shortage and permissible delay in payment,” Journal of the Operational Research Society, vol. 48, no. 8, pp. 826–833, 1997. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  23. J.-T. Teng, “On the economic order quantity under conditions of permissible delay in payments,” Journal of the Operational Research Society, vol. 53, no. 8, pp. 915–918, 2002. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  24. H.-C. Chang, “A note on permissible delay in payments for (Q, R) inventory systems with ordering cost reduction,” International Journal of Information and Management Sciences, vol. 13, no. 4, pp. 1–11, 2002. View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  25. M. Y. Jaber and I. H. Osman, “Coordinating a two-level supply chain with delay in payments and profit sharing,” Computers and Industrial Engineering, vol. 50, no. 4, pp. 385–400, 2006. View at Publisher · View at Google Scholar · View at Scopus
  26. J. Luo, “Buyer–vendor inventory coordination with credit period incentives,” International Journal of Production Economics, vol. 108, no. 1-2, pp. 143–152, 2007. View at Publisher · View at Google Scholar · View at Scopus
  27. B. Sarkar, H. Gupta, K. Chaudhuri, and S. K. Goyal, “An integrated inventory model with variable lead time, defective units and delay in payments,” Applied Mathematics and Computation, vol. 237, pp. 650–658, 2014. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at MathSciNet · View at Scopus
  28. B. Sarkar, “Supply chain coordination with variable backorder, inspections, and discount policy for fixed lifetime products,” Mathematical Problems in Engineering, vol. 2016, Article ID 6318737, 14 pages, 2016. View at Publisher · View at Google Scholar · View at MathSciNet · View at Scopus
  29. K. V. Geetha and R. Uthayakumar, “Economic design of an inventory policy for non-instantaneous deteriorating items under permissible delay in payments,” Journal of Computational and Applied Mathematics, vol. 233, no. 10, pp. 2492–2505, 2010. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at MathSciNet · View at Scopus
  30. J. C. Pan, M.-C. Lo, and Y.-C. Hsiao, “Optimal reorder point inventory models with variable lead time and backorder discount considerations,” European Journal of Operational Research, vol. 158, no. 2, pp. 488–505, 2004. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at MathSciNet · View at Scopus
  31. J. C.-H. Pan and Y.-C. Hsiao, “Integrated inventory models with controllable lead time and backorder discount considerations,” International Journal of Production Economics, vol. 93-94, pp. 387–397, 2005. View at Publisher · View at Google Scholar · View at Scopus
  32. W.-C. Lee, J.-W. Wu, and C.-L. Lei, “Computational algorithmic procedure for optimal inventory policy involving ordering cost reduction and back-order discounts when lead time demand is controllable,” Applied Mathematics and Computation, vol. 189, no. 1, pp. 186–200, 2007. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  33. M.-C. Lo, J. C.-H. Pan, K.-C. Lin, and J.-W. Hsu, “Impact of lead time and safety factor in mixed inventory models with backorder discounts,” Journal of Applied Sciences, vol. 8, no. 3, pp. 528–533, 2008. View at Publisher · View at Google Scholar · View at Scopus
  34. Y.-J. Lin, “An integrated vendor-buyer inventory model with backorder price discount and effective investment to reduce ordering cost,” Computers and Industrial Engineering, vol. 56, no. 4, pp. 1597–1606, 2009. View at Publisher · View at Google Scholar · View at Scopus
  35. L.-Y. Ouyang, N.-C. Yeh, and K.-S. Wu, “Mixture inventory model with backorders and lost sales for variable lead time,” Journal of the Operational Research Society, vol. 47, no. 6, pp. 829–832, 1996. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at Scopus
  36. A. Arkan and S. R. Hejazi, “Coordinating orders in a two echelon supply chain with controllable lead time and ordering cost using the credit period,” Computers and Industrial Engineering, vol. 62, no. 1, pp. 56–69, 2012. View at Publisher · View at Google Scholar · View at Scopus
  37. E. L. Porteus, “Optimal lot sizing, process quality improvement and setup cost reduction,” Operations Research, vol. 34, no. 1, pp. 137–144, 1986. View at Publisher · View at Google Scholar · View at Scopus
  38. L.-Y. Ouyang, K.-S. Wu, and C.-H. Ho, “An integrated vendor-buyer inventory model with quality improvement and lead time reduction,” International Journal of Production Economics, vol. 108, no. 1-2, pp. 349–358, 2007. View at Publisher · View at Google Scholar · View at Scopus
  39. B. Sarkar and A. Majumder, “Integrated vendor-buyer supply chain model with vendor's setup cost reduction,” Applied Mathematics and Computation, vol. 224, pp. 362–371, 2013. View at Publisher · View at Google Scholar · View at Zentralblatt MATH · View at MathSciNet · View at Scopus