A mathematical model for order splitting in a multiple supplier single-item inventory system Article

Abginehchi, S, Farahani, RZ, Rezapour, S. (2013). A mathematical model for order splitting in a multiple supplier single-item inventory system . JOURNAL OF MANUFACTURING SYSTEMS, 32(1), 55. 10.1016/j.jmsy.2012.07.015

cited authors

  • Abginehchi, S; Farahani, RZ; Rezapour, S

authors

abstract

  • In this paper we develop a mathematical model which considers multiple-supplier single-item inventory systems. The lead times of the suppliers and demand arrival rate are random variables. All shortages are backordered. Continuous review (s, Q) policy has been assumed. When the inventory level hits the reorder level, the total order is split among n suppliers. The problem is to determine the reorder level and order quantity for each supplier so that the expected total cost per time unit, including ordering cost, procurement cost, inventory holding cost and shortage cost is minimized. We also conduct extensive numerical experiments to show the advantages of our model compared to the relevant models in the literature. In addition, some managerial insights are observed. Crown Copyright © 2012 Published by Elsevier Ltd on behalf of The Society of Manufacturing Engineers. All rights reserved.

publication date

  • January 1, 2013

published in

Digital Object Identifier (DOI)

start page

  • 55

volume

  • 32

issue

  • 1