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| Lot Sizes Coordination among a Manufacturer and Two Suppliers Based on Supply-Hub |
| GUI Hua-Ming, MA Shi-Hua, GUAN Xu, ZHANG Lin-Lan |
| 1. Hubei University, Wuhan, China;
2. Huazhong University of Science & Technology, Wuhan, China |
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Abstract Considering an assemblytype supply chain consisting of two suppliers and a manufacturer, the cost functions of them are established. Moreover, the production and order quantity models are proposed respectively by the manufacturer and two suppliers responsible for the supplyhub’s operation and costs. The results show that when the manufacturer is responsible for the supplyhub’s operation, the farther the suppliers are from the supplyhub, the greater the manufacturer’s production quantity is, and the replenishing lotsizes of parts to the supplyhub are greater compared to the manufacturer being responsible for the supplyhub’s operation. When two suppliers are responsible for the supplyhub’s operation, the production quantities of the manufacturer and suppliers do not vary with the distance between suppliers and supplyhub. Moreover, in the conditions for using supplyhub model, compared to the manufacturer, the suppliers are responsible for supplyhub operation and costs, which may make the whole supply chain to achieve Pareto optimization since the manufacturer and suppliers can obtain a winwin solution.
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Received: 24 February 2011
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2012, Vol. 9 
