(z, Z) contracts for VMI with stochastic demand and (Q, r) model | |
| Author | Paul, Chandrachur |
| Call Number | AIT Thesis no.ISE-24-05 |
| Subject(s) | Inventory control--Mathematical models Industrial and Production Engineering |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Industrial and Manufacturing Engineering |
| Publisher | Asian Institute of Technology |
| Abstract | Due to the escalating competition and constantly shifting consumer demands, businesses must constantly review their operations. Companies need to collaborate and coordinate with other supply chain participants to extract and provide customers with the most value possible. A Supply Chain Contract (SCC) among the members aims to foster the same. Creating an SCC, which can be beneficial for all the partners (Lummus & Vokurka, n.d.) is necessary, to drive down the operational costs. Driving down the operational costs helps reduce the final product's price. In a competitive market, the lower the price of the product, the higher the chance for the customer to buy it. In turn, the sales of the company increase, and the company generates profit in that way (Agrawal & Yadav, 2020) In this research, a (z, Z) contract between a manufacturer & retailer under a Vendor Managed Inventory (VMI) system in the case of stochastic demand is addressed and a (Q, r) inventory policy is used. A mathematical model has been developed to formulate a total cost function for the entire supply chain, where the lead time is considered constant and production, delivery, ordering, backorder penalty, and holding costs are fixed. Following that, numerical experiments have been conducted using MATLAB to calculate optimal values of Q & R. Sensitivity analysis with respect to different parameters have subsequently been carried out to verify the robustness of the solution as well. |
| Year | 2024 |
| Type | Thesis |
| School | School of Engineering and Technology |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial and Manufacturing Engineering (IME) |
| Chairperson(s) | Huynh, Trung Luong |
| Examination Committee(s) | Manukid Parnichkun;Mongkol Ekpanyapong |
| Scholarship Donor(s) | AIT Scholarships |
| Degree | Thesis (M. Eng.) - Asian Institute of Technology, 2024 |