Two-Echelon Inventory Model with Lead Time and Return Depending upon Demand
Abstract
Inventory management with returned items has recently drawn the attention because the recovery of returned items for renewal usage supports natural resource conservation as well as reduces cost of production. In this study, a two-echelon inventory model for a single item with lead time is discussed to propose the two-echelon inventory model in which the quantity of return depended on the demand has been analyzed. The optimal of re-order point, order quantity, and a number of cycles of order quantity are also considered to minimize the total cost of the system. Moreover, a numerical example is illustrated and sensitivity analyses of some parameters are also elucidated. Keywords: lead time, return, two-echelon inventoryReferences
Andersson, J. & Melchiors, P. (2001) A two-echelon inventory model with lost sales. International Journal of Production Economics, 69, 307-315.
Korugan, A. & Gupta, S.M. (1998). A multi-echelon inventory system with returns. Computers and Industrial Engineering, 35, 145-148.
Mitra, S. (2009). Analysis of two-echelon inventory system with returns. Omega, 37, 106–115.
Mitra, S. (2012). Inventory management in a two-echelon closed-loop supply chain with correlated demands and returns. Computers and Industrial Engineering, 62, 870-879.
Seifbarghy, M., & Jokar, M.R.A. (2006) Cost evaluation of a two-echelon inventory system with lost sales and approximately Poisson demand. International Journal of Production Economics, 102, 244-254.
Teng, H.M., Hsu, P.H., Chiu, Y. & Wee, H.M. (2011). Optimal ordering decisions with returns and excess inventory. Applied Mathematics and Computation, 217, 9009-9018.
Korugan, A. & Gupta, S.M. (1998). A multi-echelon inventory system with returns. Computers and Industrial Engineering, 35, 145-148.
Mitra, S. (2009). Analysis of two-echelon inventory system with returns. Omega, 37, 106–115.
Mitra, S. (2012). Inventory management in a two-echelon closed-loop supply chain with correlated demands and returns. Computers and Industrial Engineering, 62, 870-879.
Seifbarghy, M., & Jokar, M.R.A. (2006) Cost evaluation of a two-echelon inventory system with lost sales and approximately Poisson demand. International Journal of Production Economics, 102, 244-254.
Teng, H.M., Hsu, P.H., Chiu, Y. & Wee, H.M. (2011). Optimal ordering decisions with returns and excess inventory. Applied Mathematics and Computation, 217, 9009-9018.
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Published
2017-06-16
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Research Article
