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Supply Chain Coordination Under Service Level Constraint and Controllable Lead Time

Supply Chain Coordination Under Service Level Constraint and Controllable Lead Time

Prashant Jindal, Anjana Solanki
Copyright: © 2016 |Volume: 7 |Issue: 2 |Pages: 23
ISSN: 1947-9328|EISSN: 1947-9336|EISBN13: 9781466691292|DOI: 10.4018/IJORIS.2016040105
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MLA

Jindal, Prashant, and Anjana Solanki. "Supply Chain Coordination Under Service Level Constraint and Controllable Lead Time." IJORIS vol.7, no.2 2016: pp.84-106. http://doi.org/10.4018/IJORIS.2016040105

APA

Jindal, P. & Solanki, A. (2016). Supply Chain Coordination Under Service Level Constraint and Controllable Lead Time. International Journal of Operations Research and Information Systems (IJORIS), 7(2), 84-106. http://doi.org/10.4018/IJORIS.2016040105

Chicago

Jindal, Prashant, and Anjana Solanki. "Supply Chain Coordination Under Service Level Constraint and Controllable Lead Time," International Journal of Operations Research and Information Systems (IJORIS) 7, no.2: 84-106. http://doi.org/10.4018/IJORIS.2016040105

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Abstract

This paper investigates the coordination issue in a decentralized supply chain having a vendor and a buyer for a defective product. The authors develop two inventory models with controllable lead time under service level constraint. The first one is propose under decentralized mode based on the Stackelberg model, the other one is propose under centralized mode of the integrated supply chain. Ordering cost reduction is also including as a decision variable along with shipping quantity, lead time and number of shipments. Computational findings using the software Matlab 7.0 are provided to find the optimal solution. The results of numerical examples show that centralized mode is better than that of decentralized mode, and to induce both vendor and buyer for coordination, proposed cost allocation model is effective. The authors also numerically investigate the effects of backorder parameter on the optimal solutions. Benefit of ordering cost reduction in both models is also provided.

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