Original scientific paper

Revisiting "integrating a cost-reduction shipment plan into a single-producer multi-retailer system with rework" using an alternative approach

Yuan-Shyi Peter Chiu ; Department of Industrial Engineering & Management, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Kuo-Wei Chiang ; Department of Industrial Engineering & Management, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN
Mei-Fang Wu ; Department of Industrial Engineering & Systems Management, Feng Chia University, Taichung, TAIWAN
Singa Wang Chiu ; Department of Business Administration, Chaoyang University of Technology, Gifong East Road, Wufong, Taichung 413, TAIWAN

Abstract

This study revisits a single-producer multi-retailer system with a cost-reduction shipment plan and rework [1] using an alternative approach. Unlike the conventional method that uses differential calculus on system cost function to prove its convexity and derive the optimal production-shipment policy, we proposed an algebraic solution procedure to the problem. Such a straightforward approach may enable the practitioners with little knowledge of calculus to understand real supply chain systems more easily.

Keywords

optimization; supply chain systems; production-shipment decision; rework; multi-shipment; algebraic approach

Hrčak ID:

185745

URI

https://hrcak.srce.hr/185745

Publication date:

18.6.2014.

Visits: 565 *