A multi-echelon supply chain model for reworkable items in multiple-markets with supply disruption

Brojeswar Pal, Shib Sankar Sana and Kripasindhu Chaudhuri

Economic Modelling, 2012, vol. 29, issue 5, 1891-1898

Abstract: The objective of this paper is to develop a multi-echelon supply chain model for multiple-markets with different selling seasons. Here, two suppliers are involved to supply the raw materials to the manufacturer where the main supplier may face supply disruption after a random time and the secondary supplier is perfectly reliable but more expensive than the main supplier. In this article, the manufacturer produces a random proportion of defective items which are reworked after regular production and are sold in a lot to another market just after completion of rework. The retailer sells the finished products in different markets according to seasons. Finally, an integrated expected cost per unit product of the chain is minimized analytically by considering the lot-size ordered as a decision variable. An appropriate numerical example is also provided to justify the proposed model.

Keywords: Supply chain; Multiple-market; Production; Reworking; Multi-echelon (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:5:p:1891-1898

DOI: 10.1016/j.econmod.2012.06.005

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