Abstract
In this paper, we develop inventory models for the three level supply chain (one supplier, one warehouse, and one retailer) and consider the problem of determining the optimal integer multiple n of time interval, time interval between successive setups and orders in the coordinated inventory model. We consider three types of individual models (independent model, retailer’s point of view model, and supplier’s point of view model). The focus of this model is minimization of the coordinated total relevant cost, and then we apply the compensation policy for the benefits and losses to our coordinated inventory model. The optimal solution procedure for the developed model is derived and the effects of the compensation policy on the optimal results are studied with the help of numerical examples.
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© 2006 Springer-Verlag Berlin Heidelberg
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Lee, J.H., Moon, I.K. (2006). Coordinated Inventory Models with Compensation Policy in a Three Level Supply Chain. In: Gavrilova, M., et al. Computational Science and Its Applications - ICCSA 2006. ICCSA 2006. Lecture Notes in Computer Science, vol 3982. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11751595_64
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DOI: https://doi.org/10.1007/11751595_64
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-34075-1
Online ISBN: 978-3-540-34076-8
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