On the determination of the optimal joint replenishment strategies in an production-inventory system

In this study, we consider a production-inventory system in which a single manufacturer conducts a joint replenishment policy Of Multiple row materials to a supplier for producing a finished-product. The focus of this Study is to determine the optimal manufacturing cycle time, the optimal replenishment cycle time and the optimal distribution schedule of each row material so as to minimize the total cost per unit time. We formulate a mathematical model for the concerned problem by taking into accounts the warehouse space in both parties (manufacturer and Supplier), transportation discount offered by the third party logistic service provider and the additional warehousing costs from leasing extra warehouse space Outside. We conduct a full theoretical analysis. And by utilizing our theoretical result, we propose ail search algorithm based oil Lee and Yao(2003) to obtain the optimal solution for the mathematical model. Finally WC use a random example to demonstrate the implementation of the proposed algorithm. We conclude that the proposed search algorithm is ail efficient Solution approach.