DOI:10.5937/jaes16-16399

This is an open access article distributed under the CC BY-NC-ND 4.0 terms and conditions.

Volume 16 article 518 pages: 192 - 201

Optimization of a manufacturer-retailer integrated type of intra-supply chain system considering unreliable production facility is explored in this study. It is assumed that a producer of consumer goods has its own sales offices, and during the fabrication process, both equipment breakdown and production of nonconforming goods seem inevitable. To explicitly address such a real intra-supply chain problem, we incorporate end products transportation cost and sales office’s stock holding cost into a prior study (Chiu [01]) with the objective of deriving the optimal fabrication runtime. Solution to the problem is obtained through the use of mathematical modeling, optimization techniques, and a proposed recursive algorithm. Applicability of research result and sensitivity analyses are demonstrated thru numerical example.

Authors deeply thank the Ministry of Science and Technology of Taiwan for sponsor of this study (under grant no. MOST102-2410-H-324-005).

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