Effective network formulations for lot sizing with backlogging in two-level serial supply chains

Solyali, Oguz
Denizel, Meltem
Süral, Haldun
This study considers the serial lot sizing problem with backlogging in two-level supply chains to determine when and how much to order at a warehouse and ship to a retailer over a T-period planning horizon so that the external known demand occurring at the retailer is satisfied and the total cost at all levels is minimized. In particular, the uncapacitated two-level serial lot sizing problem with backlogging and the two-level serial lot sizing problem with cargo capacity and backlogging are formulated using effective shortest-path network representations, which define the convex hull of their feasible solutions. These representations lead to efficient algorithms with O(T-3) time for the uncapacitated problem and O(T-6) time for the capacitated problem. Furthermore, a tight reformulation with O(T-3) variables and O(T-2) constraints (resp.O(T-6) variables and O(T-5) constraints) is proposed for the uncapacitated (resp.capacitated) problem.


Order timing strategies in a single-supplier, multi-retailer system
Bakal, İsmail Serdar (2010-01-01)
The timing of retailer order placement is an important factor in supply chain performance in systems with uncertain end-customer demands. Retailers often prefer short order lead times, which permits the resolution of demand uncertainty prior to order placement, and reduces the risks associated with excess inventory. Suppliers, in contrast, prefer long lead times, in order to match supply output with retailer demand. These conflicting preferences create tension between a supplier and retailers regarding orde...
Joint quantity flexibility for multiple products in a decentralized supply chain
Karakaya, Selcuk; Bakal, İsmail Serdar (2013-02-01)
In this study, we analyze a decentralized supply chain with a single retailer and a single manufacturer where the retailer sells multiple products in a single period. The products differ in terms of a limited number of features only. The retailer places initial orders based on preliminary demand forecasts at the beginning of the period and has an opportunity to modify its initial order after receiving perfect demand information. However, the final orders of the retailer are constrained by its initial orders...
One-warehouse multi-retailer problem under inventory control and transportation policies
Solyalı, Oğuz; Süral, Haldun; Department of Industrial Engineering (2008)
We consider a one-warehouse multi-retailer system where the warehouse orders or receives from its supplier and replenishes multiple retailers with direct shipping or multi-stop routing over a finite time horizon. The warehouse has the knowledge of external (deterministic) demands at the retailers and manages their inventories while ensuring no stock-out. We consider two problems with direct shipping policy and two problems with routing policy. For the direct shipping policy, the problem is to determine the ...
Optimization of Supply Chain Systems with Price Elasticity of Demand
Kaplan, Ugur; TÜRKAY, METİN; Karasözen, Bülent; Biegler, Lorenz T. (2011-09-01)
A centralized multiechelon, multiproduct supply chain network is presented in a multiperiod setting with products that show varying demand against price. An important consideration in such complex supply chains is to maintain system performance at high levels for varying demands that may be sensitive to product price. To examine the price-centric behavior of the customers, the concept of price elasticity of demand is addressed. The proposed approach includes many realistic features of typical supply chain s...
Closed-loop supply chain network design under demand, return and quality uncertainty
Batun, Sakine (2018-07-08)
We consider the problem of designing a closed-loop supply chain (CLSC) network in the presence of uncertainty in demand quantities, return rates, and quality of the returned products. We formulate the problem as a two-stage stochastic mixed-integer program (SMIP) that maximizes the total expected profit. The first-stage decisions in our model are facility location and capacity decisions, and the second-stage decisions are the forward/backward flows on the network and hence the production/recovery quantities...
Citation Formats
O. Solyali, M. Denizel, and H. Süral, “Effective network formulations for lot sizing with backlogging in two-level serial supply chains,” IIE TRANSACTIONS, pp. 146–157, 2016, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/35969.