Search

This study addresses a practical problem within a multi-level supply chain where a wide range of customers can be served through different strategies such as make-to-stock, make-to-order, or vendor-managed inventory. The customer demand is stochastic, and sensitive to pricing associated with different production-inventory strategies. We propose a two-stage stochastic mixed-integer non-linear programming model. In the first stage, decisions are made regarding the selection of production-inventory strategies and pricing to maximise the expected profit. The second stage involves decisions related to production, inventory, and distribution, which are used to evaluate the first-stage decisions under various scenarios with different levels of accuracy. To solve the model, a metaheuristic approach based on the Simulated Annealing algorithm is developed. To showcase the practical applicability of our model and solution approach, we use a real case study in a Canadian pulp and paper supply chain. The results revealed that both the production-inventory strategy assigned to customers and the sales price underwent changes across scenarios. Furthermore, we demonstrated that by implementing the SA algorithm, we could improve the initial profit by up to 1.43% through slight adjustments in the sales price and assigned strategies for customers. [ABSTRACT FROM AUTHOR]

In a competitive environment, effective management of production and inventory decisions is critical to maintain an efficient and balanced flow of the supply chain system. Manufacturing companies across supply chains have recognised that inventories can be managed more effectively through increased collaboration and better coordination. In practice, production planning and inventory control decisions are not separated, and supply chain members can significantly reduce costs through the coordination of production and inventory decisions. Research in this field has received much attention in recent years. This study aims to review coordination, cooperation, and collaboration (CCC) mechanisms in production-inventory studies. By using an established research methodology, a total of 118 articles were reviewed and the implemented CCC mechanisms were classified into three main categories: contractual practices, joint decision-making practices, and information-sharing practices. By examining the selected articles according to the implemented methodologies and their impact on the sustainably of supply chains, research gaps and future directions for academics and practitioners were identified. This study shows that more research is needed to discover the impact of combining different CCC mechanisms on supply chain efficiency in terms of economic, environmental, and social concerns. [ABSTRACT FROM AUTHOR]