Work

A single-vendor multi-buyer inventory model with multiple raw material and quality degradation: A case study on agri-food industry

Year: 2023

Type: article

Abstract: Managing degraded-quality materials in a supply chain with a single vendor and multiple buyers is prevalent and critical in modern industry. This research addresses the single-vendor multi-buyer problem by incorporating multiple raw materials and quality degradation to maximize joint total profit (JTP). The proposed model utilizes the Whale Optimization Algorithm (WOA) for optimization, with empirical data derived from an agri-food industry case study in Indonesia. Experimental findings demonstrate the superior effectiveness of WOA compared to ChOA, GA, GWO PSO, and heuristics in solving the single-vendor multi-buyer problem. Sensitivity analysis reveals noteworthy insights: increased demand boosts total profit and production cycle efficiency, while elevated shipping costs for finished products negatively impact JTP by reducing production efficiency. Moreover, escalating quality degradation rates decrease JTP and production cycle time. This study significantly contributes to optimizing single-vendor and multi-buyer operations by addressing multiple raw materials and quality degradation, offering valuable insights into sensitivity analysis for critical factors in the agri-food industry.

Source: Results in Control and Optimization

DOI: 10.1016/j.rico.2023.100353

Authors: Dana Marsetiya Utama, Iludy Rosetta Kusuma, Ikhlasul Amallynda, Teguh Baroto, Wakhid Ahmad Jauhari

Institutions: Universitas Muhammadiyah Malang, Sebelas Maret University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Responsible consumption and production, Zero hunger

Open Access status: gold

Estimated APC paid: $1,000