Optimal Ordering Policy in Dual-Supplier System with Unreliable Lead-Time and Minimum Lot Size

Author

Jin, Qun ; Liu, Lei ; Wang, Zuwen ; Wang, Yuhui

Author_Institution

Sch. of Manage. & Econ., Univ. of Electron. Sci. & Technol. of China, Chengdu

fYear

2008

fDate

20-20 Nov. 2008

Firstpage

380

Lastpage

384

Abstract

In this paper, we investigate an optimal ordering policy in a dual-supplier system with forecast update when considering supplierpsilas unreliable lead-time and minimum lot size. It is showed that the optimal order quantity and expected profit of unreliable lead-time are smaller than those without uncertainty. The upper limits of supplierspsila minimum lot size that the manufacturer can accept are decreasing in the possibility of delay. Moreover, the unreliable lead-time reduces the feasibility of dual-supplier system.

Keywords

forecasting theory; lead time reduction; lot sizing; order processing; supply chain management; dual-supplier system; forecast update; minimum lot size; optimal order quantity; optimal ordering policy; unreliable lead-time; Contracts; Costs; Delay; Demand forecasting; Economic forecasting; Electronic equipment manufacture; Engineering management; Manufacturing; Technology management; Uncertainty; Dual-supplier system; Minimum Lot Size; Unreliable Lead-time;

fLanguage

English

Publisher

ieee

Conference_Titel

Future Information Technology and Management Engineering, 2008. FITME '08. International Seminar on

Conference_Location

Leicestershire, United Kingdom

Print_ISBN

978-0-7695-3480-0

Type

conf

DOI

10.1109/FITME.2008.83

Filename

4746515