A production-inventory model with probabilistic deterioration in two-echelon supply chain management

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Abstract

In this study, a production-inventory model is developed for a deteriorating item in a two-echelon supply chain management (SCM). An algebraical approach is applied to find the minimum cost related to this entire SCM. We consider three types of continuous probabilistic deterioration function to find the associated cost. The purpose of this study is to obtain the minimum cost with integer number of deliveries and optimum lotsize for the three different models. Some numerical examples, sensitivity analysis and graphical representation are given to illustrate the model. A numerical comparison between the three models is also given.

Original languageEnglish
Pages (from-to)3138-3151
Number of pages14
JournalApplied Mathematical Modelling
Volume37
Issue number5
DOIs
Publication statusPublished - 2013 Mar 1

All Science Journal Classification (ASJC) codes

  • Modelling and Simulation
  • Applied Mathematics

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