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Production control and replenishment strategy with multiple suppliers

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Hajji, Adnene, Gharbi, Ali, Kenné, Jean-Pierre et Pellerin, Robert. 2011. « Production control and replenishment strategy with multiple suppliers ». European Journal of Operational Research, vol. 208, nº 1. pp. 67-74.
Compte des citations dans Scopus : 28.

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Abstract

This paper considers the joint supplier selection, replenishment and manufacturing control problem in a dynamic stochastic context. This problem is characterized by conflicting interests between suppliers, the manufacturer, and clients, which raise the need for coordination and information sharing. This paper contributes to the discourse mainly by developing and resolving an integrated mathematical model leading to information sharing strategies for supplier selection, replenishments and production activities. This is an optimal control problem with state constraints and hybrid dynamics. A dynamic stochastic model is thus proposed, and the optimality conditions obtained are then solved numerically. It is shown that the problem considered leads to a modified state-dependent multi-level (s, S) policy for the supplier selection and replenishment strategy and a base-stock policy for the production activities. The fact that these control policies are coupled confirms the necessity of considering the interactions present in the system in an integrated model. The obtained results show clearly that it is always profitable to consider multiple suppliers to make replenishment and production decisions. Moreover, it is shown that the availability rates of the supply chain actors and the replenishment lead time are important parameters to consider when choosing the best supplier.

Item Type: Peer reviewed article published in a journal
Professor:
Professor
Gharbi, Ali
Kenné, Jean-Pierre
Affiliation: Génie de la production automatisée, Génie mécanique
Date Deposited: 18 Feb 2013 21:36
Last Modified: 11 Mar 2016 17:24
URI: http://espace2.etsmtl.ca/id/eprint/3139

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