Developing a Mathematical Model for Vendor Managed Inventory Considering Deterioration and Amelioration Items in a Three-Level Supply Chain

نویسندگان

1 Department of Industrial Engineering, Yazd University, Yazd, Iran

2 Department of Industrial Engineering, Yazd University, Yazd, Iran

doi
10.22059/jieng.2015.57062
چکیده

Todays, improving the competitiveness of companies and rapidly responding to diverse customers’ demands requires efficient management of the supply chain. Integration is one of the effective indices in a supply chain, and vendor managed inventory (VMI) is one of the innovative approaches in this field. In this paper, an integrated model based on a VMI system for deteriorating and ameliorating items in a three-level supply chain is developed. To coordinate retailers and producers in the supply chain, the common replenishment cycle is used which is a technique of a VMI system. The assumptions of this model consist of a deterministic demand rate for each retailer, certain production and deterioration rates. Furthermore, in this paper the amelioration of items is mentioned that follow the Weibull distribution. First, a mixed-integer nonlinear mathematical model is presented. Then to validate the proposed model, a numerical example is given. To solve the model, a genetic algorithm method is presented.