In this paper, we establish the convexity of important cost functions in a general class of multi-echelon inventory models. In particular, we first study an assembly system with a single finished product managed using an echelon order-up-to policy. We show that the shortage penalty cost over any horizon is jointly convex with respect to the base-stock levels and capacity levels. Our second resu...

One of the problem supply chain management is a bullwhip effect that causes less than an ideal system chain.. As well as UMKM Marrone, which industry home-based production brownies, often experienced due to forecasting are not properly uodated and fluctuations in demand certain season.
 The one swelling cost production. However, can be anticipated by using method vendor managed inventory w...

T work is motivated by the need to solve the inventory routing problem when implementing a business practice called vendor managed inventory replenishment. With vendor managed inventory replenishment, vendors monitor their customers’ inventories, and decide when and how much inventory should be replenished at each customer. The inventory routing problem attempts to coordinate inventory replenis...

The use of inventory and options in the management of financial risk in planning under uncertainty is analyzed. The intuitive notion that the addition of inventory can reduce risk is explored to reveal that it is only guaranteed if models managing risk are used and can otherwise lead to higher risk exposures. An example where risk is managed with options contracts is also presented, revealing t...

The research studies on types of products and purchase investigation into inventory management of supply chain. We choose cases from domestic manufacturing industry and retail industry to investigate their inventory management models. The types of products separate functional products and innovative products; purchasing orientations divides into buying and procurement orientation. Two construct...

The successful implementation of supply chain management depends on many soft issues (strategic/behavioural) such as organizational resistance to change, inter-functional conflicts, joint production planning, profit sharing, team oriented performance measures, channel power shift, information sharing, real time communication, inventory and technical compatibility (Min & Zhou 2002). Many of the ...

Improvement in supply chain performance is one of the major issues in the current world. Lack of coordination in the supply chain is the main drawback of supply chain that many researchers have proposed different methodologies to overcome it. VMI (Vendor-managed inventory) is one of these methodologies that implementing it has some obstacles. This paper proposes new model that is agent-managed ...