A Mathematical Model for Tactical Operations Planning for Response-Base Supply Chains

Sheu Hua Chen
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Sheu Hua Chen: National Chinyi University of Technology, Taiwan

International Journal of Information Systems and Supply Chain Management (IJISSCM), 2009, vol. 2, issue 3, 77-89

Abstract: This article explores the issue of lead-time in response-based supply chains. From a tactical viewpoint of response-based supply chains, the processing time for each stage is assumed to be a random variable since different practices exist in the selection pool of each stage under a specific lead-time requirement. The decision-maker must select suitable practices of operations for each stage to ensure that the lead time meets a desired requirement. The relationship and the trade-off between the operating costs for the selected practices and the inventory holding cost of safety stock that is in turn affected by the lead-time are discussed. A mathematical model for planning the operations from a manufacturer viewpoint is proposed. The variation in practical situation for the proposed model is also addressed. A hypothetic example is provided to illustrate the effectiveness of the proposed model. With reference to the computational results, the effect of several parameters on the model’s optimal solutions was discussed.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:igg:jisscm:v:2:y:2009:i:3:p:77-89

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