2010Industrial Engineering and ManagementRequires access

Research on Supply Chain Inventory Optimization with Controllable Lead Time and Fuzzy Service Level Constraint

Yi Li

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Abstract

Based on the literature Stackelberg Model for Controllable Lead Time Supply Chain with Service Level Constrains and Its Coordination Mechanism(Chinese Journal of Management,2008),the service level constrain is further assumed to be a fuzzy number and a supply chain inventory optimization model with controllable lead time and fuzzy service level constraint is studied.The fuzzy non-linear programming is adopted to get the optimal solutions.The results of numerical examples show that,the optimal order quantity,optimal lead time,inventory cost of each party of supply chain and the membership function will be changed with the changes of subjective estimated value intervals of service level constraint.However,as the value intervals of service level constraint increases to be certain extent,the optimal order quantity,optimal lead time,inventory cost of each party of supply chain and the membership function will not be changed any more.

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What this paper is about

Based on the literature Stackelberg Model for Controllable Lead Time Supply Chain with Service Level Constrains and Its Coordination Mechanism(Chinese Journal of Management,2008),the service level constrain is further assumed to be a fuzzy number and a supply chain inventory optimization model with controllable lead time and fuzzy service level constraint is studied.The fuzzy non-linear programming is adopted to get the optimal solutions.The results of numerical examples show that,the optimal order quantity,optimal lead time,inventory cost of each party of supply chain and the membership function will be changed with the changes of subjective estimated value intervals of service level constraint.However,as the value intervals of service level constraint increases to be certain extent,the optimal order quantity,optimal lead time,inventory cost of each party of supply chain and the membership function will not be changed any more.

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Available abstract

Based on the literature Stackelberg Model for Controllable Lead Time Supply Chain with Service Level Constrains and Its Coordination Mechanism(Chinese Journal of Management,2008),the service level constrain is further assumed to be a fuzzy number and a supply chain inventory optimization model with controllable lead time and fuzzy service level constraint is studied.The fuzzy non-linear programming is adopted to get the optimal solutions.The results of numerical examples show that,the optimal order quantity,optimal lead time,inventory cost of each party of supply chain and the membership function will be changed with the changes of subjective estimated value intervals of service level constraint.However,as the value intervals of service level constraint increases to be certain extent,the optimal order quantity,optimal lead time,inventory cost of each party of supply chain and the membership function will not be changed any more.

Key concepts: Lead time, Supply chain, Stackelberg competition, Service level, Constraint (computer-aided design), Mathematical optimization, Fuzzy logic, Operations research

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