Publication:
Stochastic models for the coordinated production and shipment problem in a supply chain

Placeholder

School / College / Institute

Organizational Unit

Program

KU Authors

Co-Authors

N/A

Publication Date

Language

Embargo Status

Journal Title

Journal ISSN

Volume Title

Alternative Title

Abstract

In this study, we consider the coordination of transportation and production policies between a single supplier and a single retailer in a stochastic environment. The supplier controls the production, holds inventory and ships the products to the retailer to satisfy the external demand. We model the system as a Markov decision process, and show that the optimal production and transportation decisions are complex and non-monotonic. Therefore, we analyze two widely-used shipment policies in the industry as well, namely time-based and quantity-based shipment policies in addition to a hybrid time-and-quantity based shipment policy. We numerically compare the performances of these policies with respect to the optimal policy and analyze the effects of the parameters in the system.

Source

Publisher

Pergamon-Elsevier Science Ltd

Subject

Computer science, Engineering, Industrial engineering

Citation

Has Part

Source

Computers and Industrial Engineering

Book Series Title

Edition

DOI

10.1016/j.cie.2012.12.012

item.page.datauri

Link

Rights

Copyrights Note

Endorsement

Review

Supplemented By

Referenced By

0

Views

0

Downloads

View PlumX Details