A multiple replenishment contract with ARIMA demand processes
- Title
- A multiple replenishment contract with ARIMA demand processes
- Author
- 김종수
- Keywords
- inventory; ARIMA; supply chain; replenishment contract
- Issue Date
- 2003-11
- Publisher
- PALGRAVE PUBLISHERS LTD
- Citation
- JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY, v. 54, issue. 11, page. 1189-1197
- Abstract
- This paper is concerned with a multiple replenishment contract with a purchase price discount in a supply chain. The chain is composed of one supplier, one buyer and consumers for a product. The replenishment contract is based upon the well-known (s, Q) policy, but allows us to contract replenishments at a future time with a price discount. Owing to the larger forecast error of future demand, the buyer should keep a higher level of safety stock to provide the same level of service as the usual (s, Q) policy. However, the buyer can reduce his purchase cost by ordering a larger quantity at a discounted price. Hence, there exists a trade-off between the price discount and the inventory holding cost. For the ARIMA demand processes, we present a model for the contract and an algorithm to find the number of the future replenishments. Computational experiments show that the algorithm finds the global optimum solution very quickly.
- URI
- https://www.tandfonline.com/doi/full/10.1057/palgrave.jors.2601620?scroll=top&needAccess=truehttps://repository.hanyang.ac.kr/handle/20.500.11754/156489
- ISSN
- 0160-5682
- DOI
- 10.1057/palgrave.jors.2601620
- Appears in Collections:
- COLLEGE OF ENGINEERING SCIENCES[E](공학대학) > INDUSTRIAL AND MANAGEMENT ENGINEERING(산업경영공학과) > Articles
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