Two-echelon fuzzy stochastic supply chain for the manufacturer–buyer integrated production–inventory system

Ravi Shankar Kumar (), M. K. Tiwari () and A. Goswami ()
Additional contact information
Ravi Shankar Kumar: Indian Institute of Technology
M. K. Tiwari: Indian Institute of Technology
A. Goswami: Indian Institute of Technology

Journal of Intelligent Manufacturing, 2016, vol. 27, issue 4, No 12, 875-888

Abstract: Abstract This paper deals with two-echelon integrated procurement production model for the manufacturer and the buyer integrated inventory system. The manufacturer procures raw material from outside suppliers (not a part of supply chain) then proceed to convert it as finished product, and finally delivers to the buyer, who faces imprecise and uncertain, called fuzzy random demand of customers. The manufacturer and the buyer work under joint channel, in which a centralized decision maker makes all decisions to optimize the joint total relevant cost (JTRC) of entire supply chain. In this account, in one production cycle of the manufacturer we determine an optimal multi-ordering policy for the buyer. To be part of this, we first derive the JTRC in stochastic framework, and then extend it in fuzzy stochastic environment. In order to scalarize the fuzzy stochastic JTRC, we use an evaluation method wherein randomness is estimated by probabilistic expectation and fuzziness is estimated by possibilistic mean based on possibility evaluation measure. To derive the optimal policies for both parties, an algorithm is proposed. A numerical illustration addresses the situations of paddy procurement, conversion to rice and fulfillment of uncertain demand of rice. Furthermore, sensitivity of parameters is examined to illustrate the model and algorithm.

Keywords: Single-manufacturer; Single-buyer; Supply chain model; Integrated procurement production; Fuzzy random demand (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1007/s10845-014-0921-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joinma:v:27:y:2016:i:4:d:10.1007_s10845-014-0921-8

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10845

DOI: 10.1007/s10845-014-0921-8

Access Statistics for this article

Journal of Intelligent Manufacturing is currently edited by Andrew Kusiak

More articles in Journal of Intelligent Manufacturing from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().