A Multiple Items EPQ/EOQ Model for a Vendor and Multiple Buyers System with Considering Continuous and Discrete Demand Simultaneously

4th Asia Pacific Conference on Manufacturing Systems; 3rd International Manufacturing Engineering Conference

Jonrinaldi^2 ; Rahman, T.^1 ; Henmaidi^2 ; Wirdianto, E.^2 ; Zhang, D.Z.^3

Master Program of Industrial Engineering, Andalas University, 25163, Indonesia^1

Department of Industrial Engineering, Andalas University, Padang

25163, Indonesia^2

Exeter Manufacturing Enterprise Centre (XMEC), College of Engineering, Mathemetics and Physical Sciences, University of Exeter, Exeter

EX4 4QF, United Kingdom^3

关键词: Economic production;    Mixed-integer nonlinear programming;    multiple buyers;    Multiple deliveries;    Production and inventory;    simultaneously;    Transportation cost;    vendor;   

Others  :  https://iopscience.iop.org/article/10.1088/1757-899X/319/1/012037/pdf
DOI  :  10.1088/1757-899X/319/1/012037

来源: IOP

【 摘 要 】

This paper proposed a mathematical model for multiple items Economic Production and Order Quantity (EPQ/EOQ) with considering continuous and discrete demand simultaneously in a system consisting of a vendor and multiple buyers. This model is used to investigate the optimal production lot size of the vendor and the number of shipments policy of orders to multiple buyers. The model considers the multiple buyers' holding cost as well as transportation cost, which minimize the total production and inventory costs of the system. The continuous demand from any other customers can be fulfilled anytime by the vendor while the discrete demand from multiple buyers can be fulfilled by the vendor using the multiple delivery policy with a number of shipments of items in the production cycle time. A mathematical model is developed to illustrate the system based on EPQ and EOQ model. Solution procedures are proposed to solve the model using a Mixed Integer Non Linear Programming (MINLP) and algorithm methods. Then, the numerical example is provided to illustrate the system and results are discussed.