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

Research output: Contribution to journalArticle

166 Citations (Scopus)

### 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 language English 3138-3151 14 Applied Mathematical Modelling 37 5 https://doi.org/10.1016/j.apm.2012.07.026 Published - 2013 Mar 1

### Fingerprint

Supply Chain Management
Supply chain management
Inventory Model
Deterioration
Costs
Deteriorating Items
Lot Size
Graphical Representation
Numerical Comparisons
Sensitivity Analysis
Entire
Model
Sensitivity analysis
Numerical Examples
Integer

### All Science Journal Classification (ASJC) codes

• Modelling and Simulation
• Applied Mathematics

### Cite this

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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.",
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In: Applied Mathematical Modelling, Vol. 37, No. 5, 01.03.2013, p. 3138-3151.

Research output: Contribution to journalArticle

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AB - 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.

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