Integrated Production-Inventory Supply Chain Model
Model description and diagrammatic representation
The integrated inventory model (Figure 1) starts when and stock is zero. At that time, the suppliers start their production with the rate unit per unit time and purchase at the rate unit per unit time to the manufacturer. When , suppliers stop their production, and at , the inventory level of suppliers become zero. The total time of the integrated model is , so the idle time for suppliers is . Similarly, the manufacturers start their production at the same time with the production rate unit per unit time and purchase this production unit to the retailer in the time gap , which is the bulk pattern. At time , manufacturers stop their production, and at , the stock of manufacturer is zero. Thus, idle period for the manufacturer is . Retailers start selling this product to the customers at time and end selling at . The idle period for retailers is .
Figure 1 Inventory level for the integrated model.