Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10347320 | Computers & Operations Research | 2005 | 16 Pages |
Abstract
This paper proposes a two-echelon inventory model for a periodical commodity, in which the market and manufacturing channels are combined. This model can be used to solve the production policy, the order policies of the raw materials for the manufacturer, and order size for the retailer. By assuming that the retailers' demand obeys normal distribution and that the retailer makes orders according to the Newsboy Rule, we derive the necessary and sufficient conditions for the optimal solution of production size, wholesale price, and replenishment cycle of raw materials for the manufacturer. Also, the necessary condition is explored in order to gain managerial insights and economic implications based on numerical examples and sensitivity analysis.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Chinho Lin, Yihsu Lin,