A JIT lot-splitting model for supply chain management: Enhance buyer–supplier linkage

A JIT lot-splitting model for supply chain management: Enhance buyer–supplier linkage

0.00 Avg rating0 Votes
Article ID: iaor20041534
Country: Netherlands
Volume: 86
Issue: 1
Start Page Number: 1
End Page Number: 10
Publication Date: Jan 2003
Journal: International Journal of Production Economics
Authors: ,
Keywords: supply chain
Abstract:

This study develops a buyer–supplier coordination model to facilitate frequent deliveries in small lot sizes in a manufacturing supply chain. The proposed model, based on the integrated total relevant costs of both buyer and supplier, determines optimal order quantity, the number of deliveries/setups, and shipping quantity over a finite planning horizon in a relatively simple JIT single buyer single supplier scenario. Under deterministic conditions for a single product, we show that the optimal delivery policy adopted by both buyer and supplier in a cooperative manner can be economically beneficial to both parties. It is shown that the optimal delivery size can be unique, regardless of the order quantity and the number of deliveries. Numerical results are also presented.

Reviews

Required fields are marked *. Your email address will not be published.