Multi-vendor and multi-buyer collaborative planning, forecasting and replenishment model

Chen, Jan-Min

doi:10.47974/JSMS-1203

Open Access Research Article

Multi-vendor and multi-buyer collaborative planning, forecasting and replenishment model

^*Jan-Min ChenCorresponding authorydjames@ydu.edu.twDepartment of Applied Intelligent Mechanical and Electrical EngineeringNo. 168, Hsueh-fu Rd, Tanwen Village, Chaochiao TownshipYu Da University of Science and TechnologyMiaoli County, 36143, Taiwan, R.O.C.View full profile →

* Corresponding author · click or hover a name for details

pp. 1023–1036Vol. 28Issue 6September 2025DOI: 10.47974/JSMS-1203XML

Received:: 30 Jan 2023
Published Online:: 13 Aug 2025
Article type:: Research Article
Language:: EN
Article no.:: JSMS-1203
Pages:: 1023–1036

Abstract

Inventory management strategy always plays a very important part in supply chain management. The mathematical models proposed by most researchers consider that the production process to be dependable and assume that inventory would not be defective. Therefore, this paper presents a two-tier integrated production-inventory supply chain model that incorporates a defect rate while accounting for an unreliable production process. If defective items are identified, they will be returned to the upstream vendors for reprocessing, after which the repaired products will be shipped back to the buyers. We designed a linear regression equation which combines the concept of decision support system (DSS) to mitigate the uncertainty in ambiguous situations, and then based on the data of the past years to predict more precisely estimate buyer demand. The main goals of this paper are to minimize the expected joint total cost and to identify the best solution considering the presence of defective items, as illustrated by our proposed model. The predicted results based on numerical examples are provided to decision makers or managers for reference to help them make the right decisions and avoid corporate losses.

Keywords

Supply chain Integer-multiplier policies Defective items Inventory DSS System

Subject Classifications

03C1362F07

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