Abstract:

The decisions of ordering and lead time reduction in a supply chain consisting of one manufacturer and one buyer with fuzzy random variable lead time demand was investigated.  A decision model was presented to determine the lead time, ordering cycle, the buyer’s target replenishment level and manufacturer’s target inventory level so that the expected supply chain cost could  be minimized. The cost functions of buyer, manufacturer and supply chain with fuzzy random lead time demand were firstly obtained. Then, considering the fuzzy total demand, the fuzzy cost functions for buyer, manufacturer and supply chain were derived. Also, The solution procedure to the proposed model was developed. At last, a numerical example was provided to illustrate the effectiveness of the proposed model.
 

Key words: variable lead time; supply chain; fuzzy random variable; fuzzy demand