 Optimal cycle time and inventory decisions in coordinated and non-coordinated two-echelon inventory system under inflation and time value of moneyDega Nagaraju, A. Ramakrishna Rao, S. Narayanan and P. Pandian International Journal of Production Research, 2016, vol. 54, issue 9, 2709-2730 Abstract: In this paper, a mathematical model is developed for a coordinated and non-coordinated two-echelon inventory system comprising of a single manufacturer and a single retailer. The objective of the model is to demonstrate the optimality of cycle time and inventory decisions under the phenomena of different inflation rates at the manufacturer and retailer points. Also, it is aimed at determining the annual net revenue of the supply chain (SC). In the proposed model, the present value of the inflated ordering/set-up costs, purchase/unit costs, carrying costs and the gross revenue is computed for the retailer, manufacturer and the SC. A numerical example is devised to illustrate the optimality of decision variables and the objective function. Also, the sensitivity analysis is carried out. Results show that the present value of the annual net revenue of the retailer, manufacturer and SC decreases with increased inflation rate at the retailer and decreased inflation rate at the manufacturer simultaneously. Date: 2016 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:tprsxx:v:54:y:2016:i:9:p:2709-2730 Ordering information: This journal article can be ordered from DOI: 10.1080/00207543.2015.1126679 Access Statistics for this article International Journal of Production Research is currently edited by Professor A. Dolgui More articles in International Journal of Production Research from Taylor & Francis Journals |
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