The Effect of Unreliable Machine for Two Echelons Deteriorating Inventory Model
Abstract: Many researchers
have developed two echelons supply chain, however only few of them consider
deteriorating items and unreliable machine in their models In this paper, we
develop an inventory deteriorating model for two echelons supply chain with
unreliable machine. The unreliable machine time is assumed uniformly
distributed. The model is solved using simple heuristic since a closed form
model can not be derived. A numerical example is used to show how the model
works. A sensitivity analysis is conducted to show effect of different lost
sales cost in the model. The result shows that increasing lost sales cost will
increase both manufacture and buyer costs however buyer’s total cost increase
higher than manufacture’s total cost as manufacture’s machine is more
unreliable.
Author: I Nyoman Sutapa, I
Gede Agus Widyadana
Journal Code: jptindustrigg140017
