An Alternative Solution Technique of the JIT Lot-Splitting Model for Supply Chain Management

Authors

Kun-Jen Chung, College of Business, Chung Yuan Christian University, Chung-Li 32023, Taiwan, Republic of China\\ National Taiwan University of Science and Technology, Taipei 10607, Taiwan, Republic of China\\ Department of International Business Management, Shih Chien University, Taipei 10462, Taiwan, Republic of ChinaFollow
Tien-Yu Lin, Department of Marketing and Supply Chain Management, Overseas Chinese University, Taichung 40721, Taiwan, Republic of ChinaFollow
H. M. Srivastava, Department of Mathematics and Statistics, University of Victoria, Victoria, British Columbia V8W 3R4, CanadaFollow

Author Country (or Countries)

Canada

Abstract

Recently, Kim and Ha [S.-L. Kim and D. Ha, A JIT lot-splitting model for supply chain management: Enhancing buyersupplier linkage, Internat. J. Prod. Econ. 86 (2003), 1–10] proposed a model to determine the optimal order quantity, the number of shipments and size delivered over a finite planning horizon in a JIT single-buyer and single-supplier scenario. Kim and Ha’s model is interesting. However, their solution procedure and some theoretical results may not be generally true. In this paper, we propose an analytical solution procedure free from using convexity to correct and improve on Kim and Ha’s model. Some flaws shown in Kim and Ha’s paper are also corrected. This paper further presents sufficient conditions to illustrate when the single-setup-multiple-delivery (SSMD) policy is more beneficial over the single-delivery policy. Furthermore, this paper finds the minimum order quantity Qmin that makes the SSMD policy favorable over the single-del!ivery policy. Numerical examples are provided to illustrate the above results.

Recommended Citation

Chung, Kun-Jen; Lin, Tien-Yu; and M. Srivastava, H. (2015) "An Alternative Solution Technique of the JIT Lot-Splitting Model for Supply Chain Management," Applied Mathematics & Information Sciences: Vol. 09: Iss. 2, Article 5.
Available at: https://digitalcommons.aaru.edu.jo/amis/vol09/iss2/5