Replenishment and lead period decisions in manufacturer–retailer stores Shu-Lu Hsu a, 2., Chun Chen Lee w
a Section of Supervision Information Systems, National Chiayi University, Taiwan b Section of Accounting, Soochow College or university, Taiwan Division of Managing Information Systems, National Chiayi University, 580 Sinmin Rd., Chiayi six-hundred, Taiwan
a r capital t i c l electronic i and f um
Received 17 June 2008
Received in revised contact form 6 September 2008
Acknowledged 13 Oct 2008
Business lead time
Circulation free require
a m s to r a c capital t
This research investigates the decisions of replenishment and lead-time lowering for a singlemanufacturer multiple-retailer built-in inventory program in which the possibility distribution of demand for every retailer is usually unknown but its mean and variance get. A decision model is offered and a minimax syndication free method is applied to determine the lead time, the common shipment cycle time, the target numbers of replenishments as well as the number of shipments per production cycle so that the expected total system cost can be reduced. A decision support system has become implemented on the personal computer to illustrate the application of the unit.
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1 ) Introduction
Many organisations have known the significance of response time as a competitive weapon and have used time as a means of differentiating themselves in the marketplace. Lead time is a elapsed time passed between releasing a great order and becoming it. Simply by shortening lead time, suppliers can lower the safety stock, reduce the out-of-stock loss, and improve the customer satisfaction level. In lots of literatures, business lead time is regarded as a decision variable and can be shortened at an extra crashing cost. Liao and Shyu (1991) first developed an inventory unit in which lead time was the first decision varying. Ben-Daya and Raouf (1994) extended the prior model simply by including the two lead time and order...