A generalized algebraic model for optimizing inventory decisions in a centralized or decentralized multi-stage multi-firm supply chain

Kit Nam Francis Leung

Transportation Research Part E: Logistics and Transportation Review, 2010, vol. 46, issue 6, 896-912

Abstract: First of all, a number of integrated models with/without lot streaming under the integer multiplier coordination mechanism is generalized by allowing lot streaming and three types of inspection for some/all upstream firms. Secondly, the optimal solutions to the three- and four-stage models are individually derived, both using the perfect squares method, which is a simple algebraic approach so that ordinary readers unfamiliar with differential calculus can easily understand how to obtain the optimal solution procedures. Thirdly, optimal expressions for some well-known models are deduced. Fourthly, expressions for sharing the coordination benefits based on Goyal's (1976) scheme are derived, and a further sharing scheme is introduced. Fifthly, two numerical examples for illustrative purposes are presented. Finally, some future research works involving extension or modification of the generalized model are suggested.

Keywords: Production-inventory; Lot; streaming; Inspection; The; perfect; squares; method (search for similar items in EconPapers)
Date: 2010
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