Integrated inventory management and supplier base reduction in a supply chain with multiple uncertainties

Song, Dong-Ping, Dong, Jing-Xin and Xu, Jingjing (2014) Integrated inventory management and supplier base reduction in a supply chain with multiple uncertainties. EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 232 (3). pp. 522-536.

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Abstract

This paper considers a manufacturing supply chain with multiple suppliers in the presence of multiple uncertainties such as uncertain material supplies, stochastic production times, and random customer demands. The system is subject to supply and production capacity constraints. We formulate the integrated inventory management policy for raw material procurement and production control using the stochastic dynamic programming approach. We then investigate the supplier base reduction strategies and the supplier differentiation issue under the integrated inventory management policy. The qualitative relationships between the supplier base size, the supplier capabilities and the total expected cost are established. Insights into differentiating the procurement decisions to different suppliers are provided. The model further enables us to quantitatively achieve the trade-off between the supplier base reduction and the supplier capability improvement, and quantify the supplier differentiation in terms of procurement decisions. Numerical examples are given to illustrate the results. © 2013 Elsevier B.V. All rights reserved.

Item Type:	Article
Additional Information:	## TULIP Type: Articles/Papers (Journal) ##
Uncontrolled Keywords:	Supply chain, Raw material procurement, Production control, Supplier base reduction, Uncertainty, Integration
Subjects:	?? HD28 ?? ?? HD61 ??
Depositing User:	Symplectic Admin
Date Deposited:	13 Jan 2016 11:48
Last Modified:	19 Jan 2023 07:38
DOI:	10.1016/j.ejor.2013.07.044
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/2046489

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• Integrated inventory management and supplier base reduction in a supply chain with multiple uncertainties. (deposited 11 Jan 2016 11:17)
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