Inventory control in supply chains: Alternative approaches to a two-stage lot-sizing problem

Kovács, András and Egri, Péter and Kis, Tamás and Váncza, József (2013) Inventory control in supply chains: Alternative approaches to a two-stage lot-sizing problem. INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, 143 (2). pp. 385-394. ISSN 0925-5273 10.1016/j.ijpe.2012.01.001

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The principal challenge of inventory control in supply chains is that the interacting autonomous enterprises have to plan their production and logistics under information asymmetry, driven by different, often conflicting objectives. In this paper, four different computational approaches are investigated to cope with this challenge: decomposition, integration, coordination, and bilevel programming. The four approaches are applied to solving the same two-stage economic lot-sizing problem, and compared in computational experiments. The prerequisites of the approaches are analyzed, and it is shown that the profits realized and the costs incurred at the different parties largely depend on the solution approach applied. This research also resulted in a novel coordination mechanism, as well as a new algorithm for the bilevel optimization approach to the investigated lot-sizing problem. A specific goal of this study is to highlight the so far less recognized application potential of the coordination and the bilevel optimization approaches for controlling inventories in a supply chain. © 2012 Elsevier B.V. All rights reserved.

Item Type: ISI Article
Uncontrolled Keywords: Supply chain, Inventory Control, integration, coordination, Bilevel programming
Subjects: Q Science > QA Mathematics and Computer Science > QA75 Electronic computers. Computer science / számítástechnika, számítógéptudomány
Divisions: Research Laboratory on Engineering & Management Intelligence
SWORD Depositor: MTMT Injector
Depositing User: EPrints Admin
Date Deposited: 05 Feb 2014 12:32
Last Modified: 26 Nov 2016 16:09

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