Integrated multistage supply chain inventory model of multiple retailers with imperfect production and inspection systems

An integrated multistage supply chain inventory model containing a single manufacturer and multiple retailers is proposed to consider deteriorating raw materials finished products with imperfect production inspection systems. The main purpose jointly determine the manufacturer’s delivery strategies retailers’ replenishment maximize total profit. First, individual profit functions of are established form function system. Then, address complexity, an algorithm obtain optimal solution. Several practical numerical examples presented demonstrate solution procedure, sensitivity analysis performed on major parameters. From results, several findings that differ from those in previous literature were observed. larger market scale, better cost control, and/or capabilities guarantee higher profits. Second, increasing deterioration rates has different effects order quantity materials. Third, shipping strategy rigid not easily changed except for significant changes (increase or decrease by 20%) rate selling price. performance meaningful management implications.