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An improved algorithm and solution on an integrated production-inventory model in a three-layer supply chain |
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| Authors: | Leopoldo Eduardo Cárdenas-Barrón Jinn-Tsair Teng |
| Institution: | a Department of Industrial and Systems Engineering, School of Engineering, InstitutoTecnológico y de Estudios Superiores de Monterrey, E. Garza Sada 2501 Sur, CP 64 849, Monterrey, Nuevo León, México b Department of Marketing and International Business, School of Business, Instituto Tecnológico y de Estudios Superiores de Monterrey, E. Garza Sada 2501 Sur, CP 64 849, Monterrey, Nuevo León, México c Department of Marketing and Management Sciences, The William Paterson University of New Jersey, Wayne, NJ 074702103, USA d Department of Industrial and Systems Engineering, Chung Yuan Christian University, Chungli 32023, Taiwan, ROC e Department of Management Sciences and Decision Making Tamkang University, Tamsui, Taipei 251, ROC |
| Abstract: | Ben-Daya et al. (2010) established a joint economic lot-sizing problem (JELP) for a three-layer supply chain with one supplier, one manufacturer, and multiple retailers, and then proposed a heuristic algorithm to obtain the integral values of four discrete variables in the JELP. In this paper, we first complement some shortcomings in Ben-Daya et al. (2010), and then propose a simpler improved alternative algorithm to obtain the four integral decision variables. The proposed algorithm provides not only less CPU time but also less total cost to operate than the algorithm by Ben-Daya et al. (2010). Furthermore, our proposed algorithm can solve certain problems, which cannot be solved by theirs. Finally, the solution obtained by the proposed algorithm is indeed a global optimal solution in each of all instances tested. |
| Keywords: | Production planning Inventory control Supply chain coordination Joint economic lot sizing |
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