An inventory model with two suppliers under yield uncertainity
Author
Gürbüz, Mustafa Çağrı
Advisor
Fadıloğlu, M. Murat
Date
2001Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
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Abstract
In this study, an inventory model with one retailer and two suppliers is
considered for a single item. Di erent from most of the models in inventory
literature, we do not make the assumption that we receive all the quantity that we
ordered. It is assumed that a random fraction of the lot size is actually delivered
by the suppliers. Hence, the model is constructed under yield uncertainty for
both binomial yield and stochastically proportional yield model. The demand
rate is constant, and backordering is allowed. The ob jective is to minimize the
long-run average cost and nd the near optimal values for the decision variables;
order quantities and reorder point. Furthermore, the regions where diversi cation
among suppliers is bene cial are investigated. The results are generalized to \M"
suppliers (M>2) and solution method is proposed. Finally, experimental study
is carried out for the two-suppliers problem.