Integrated Production-Inventory Supply Chain Model
Read this article. An integrated production-inventory model is constructed to address supplier, manufacturer, and retailer uncertainties. According to the author, what are the three types of uncertainties in supply chain management?
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.