DUAL-WAREHOUSE MANAGEMENT SYSTEM AND METHOD FOR CALCULATING THE MINIMUM JOINT COST OF A SUPPLY CHAIN

• US 20100179848A1
• Filed: 08/20/2009
• Published: 07/15/2010
• Est. Priority Date: 01/14/2009
• Status: Active Grant

• Current Assignee: National Taiwan University of Science and Technology
• Original Assignee: National Taiwan University of Science and Technology
• Inventors: Lin, Yu-Siang, Yu, Chao-Pen, Wee, Hui-Ming, Wang, Kung-Jeng
• Granted Patent: US 8,112,297 B2
• Time in Patent Office: Days
• US Class Current: 705/8
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 30/0206 Price or cost determination based on market factors
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A dual-warehouse management system for a supply chain and a method for calculating a minimum of a joint cost thereof are provided. A manufacturer function module and a distributor function module are used to estimate a manufacturer'"'"'s total cost and a distributor'"'"'s total cost respectively. Afterwards, a joint cost optimization module is used to calculate a minimum joint cost. Accordingly, a product lot and a delivery time of a deteriorating item delivered from the manufacturer to the distributor are obtained in a planning horizon.

Claims

1. A dual-warehouse management system for a supply chain, wherein the supply chain comprises a manufacturer and a distributor, the manufacturer delivers a product lot of a deteriorating item to the distributor, and the distributor manages a primary distribution warehouse and a secondary distribution warehouse and stores the product lot in the primary distribution warehouse, and stores remained product lot in the secondary distribution warehouse when the primary distribution warehouse reaches a maximum capacity, and the dual-warehouse management system for a supply chain comprising:

a manufacturer function module, estimating a total cost of the manufacturer according to a manufacturing inventory level, a manufacturing deteriorating cost and a delivery times of the deteriorating item for the manufacturer;

a distributor function module, estimating a total cost of the distributor according to a respective distributing inventory level, a respective distributing deteriorating cost of the deteriorating item for the primary distribution warehouse and the secondary distribution warehouse, the delivering frequency, and shortage cost; and

a joint cost optimization module, calculating a minimum of a joint cost obtained by adding the manufacturer'"'"'s total cost and the distributor'"'"'s total cost, so as to obtain the product lot and the delivery times of the deteriorating item to be delivered from the manufacturer to the distributor in a planning time horizon,

wherein the joint cost optimization module compares the joint costs with the delivery times of n, n+1 and n−

1, and when the joint cost with the delivery times of n is less than or equal to the joint cost with the delivery times of n+1, and meanwhile when the joint cost with the delivery times of n is also less than or equal to the joint cost with the delivery times of n−

1, the joint cost with the delivery times of n is determined to be the minimum.

2. The dual-warehouse management system for a supply chain as claimed in claim 1, wherein the joint cost optimization module comprises:

a cost minimization module, establishing a joint cost calculation function to calculate the minimum of the joint cost; and

a solving module, calculating an approximate solution according to the joint cost calculation function, and calculating the joint costs with the delivery times of n, n+1 and n−

1, wherein n is a positive integer and an initial value thereof is 1,

wherein when the joint cost with the delivery times of n is greater than the joint cost with the delivery times of n+1, or when the joint cost with the delivery times of n is greater than the joint cost with the delivery times of n−

1, after n is added by 1, another approximate solution of the product lot is repeatedly calculated until the joint cost with the delivery times of n is less than or equal to the joint cost with the delivery times of n+1, and meanwhile the joint cost with the delivery times of n is also less than or equal to the joint cost with the delivery times of n−

1.

3. The dual-warehouse management system for a supply chain as claimed in claim 2, wherein the joint cost optimization module further comprises:

a global convexity verification module, verifying whether respective solutions of the product lot and the delivering frequency n in the joint cost calculation function have minimum values.

4. The dual-warehouse management system for a supply chain as claimed in claim 1, wherein the manufacturer function module comprises:

a manufacturing inventory level estimation module, estimating the manufacturing inventory level according to a production rate and a manufacturing inventory deteriorating rate; and

a manufacturer'"'"'s total cost estimation module, estimating the manufacturer'"'"'s total cost according to a setup cost, a manufacturing holding cost, the delivering frequency, the manufacturing inventory level and the manufacturing deteriorating cost of the manufacturer.

5. The dual-warehouse management system for a supply chain as claimed in claim 4, wherein the manufacturer function module further comprises:

a setup cost estimation module, estimating the setup cost according to a time value of money, the delivering frequency and a product manufacturing period;

a manufacturing holding cost estimation module, estimating the manufacturing holding cost according to the manufacturing inventory level, the time value of money and the product manufacturing period; and

a manufacturing deteriorating cost estimation module, estimating the manufacturing deteriorating cost according to the manufacturing inventory deteriorating rate, the delivering frequency and the product manufacturing period.

6. The dual-warehouse management system for a supply chain as claimed in claim 1, wherein the distributor function module comprises:

a distributing inventory level estimation module, respectively estimating the distributing inventory levels of the primary distribution warehouse and the secondary distribution warehouse according to a market demand and the respective distributing inventory deteriorating rates of the primary distribution warehouse and the secondary distribution warehouse;

a delay payment profit and loss calculation module, calculating a payable interest and an earning interest when the distributor delays to pay the manufacturer; and

a distributor'"'"'s total cost estimation module, estimating the distributor'"'"'s total cost according to the delivering frequency, an ordering cost of the distributor, the respective distributing holding costs, the respective distributing inventory levels and the respective distributing deteriorating costs of the primary distribution warehouse and the secondary distribution warehouse, a shortage cost, the payable interest and the earning interest.

7. The dual-warehouse management system for a supply chain as claimed in claim 6, wherein the distributor function module further comprises:

an ordering cost estimation module, estimating the ordering cost according to a time value of money, the delivering frequency and a product manufacturing period;

a distributing holding cost estimation module, respectively estimating distributing holding costs of the primary distribution warehouse and the secondary distribution warehouse according to the respective distributing inventory levels and respective demand periods of the primary distribution warehouse and the secondary distribution warehouse, and the time value of money;

a shortage cost estimation module, estimating the shortage cost according to a unit shortage cost, a distribution shortage time, the market demand and the delivering frequency; and

a distributing deteriorating cost estimation module, estimating the respective distributing deteriorating costs of the primary distribution warehouse and the secondary distribution warehouse according to respective distributing inventory deteriorating rates, the respective demand periods of the primary distribution warehouse and the secondary distribution warehouse, and the delivering frequency.

8. A method for calculating a minimum joint cost for a dual-warehouse management system of a supply chain, wherein the supply chain comprises a manufacturer and a distributor, the manufacturer delivers a product lot of deteriorating items to the distributor, and the distributor manages a primary distribution warehouse and a secondary distribution warehouse and stores the product lot in the primary distribution warehouse, and stores remained product lot in the secondary distribution warehouse when the primary distribution warehouse reaches a maximum capacity, the method for calculating a minimum joint cost comprising:

providing the manufacturer'"'"'s information and the distributor'"'"'s information, the manufacturer'"'"'s information comprising a manufacturing inventory level and a manufacturing deteriorating cost of the deteriorating item, and the distributor information comprising a respective distributing inventory level and a respective distributing deteriorating cost of the deteriorating item in the primary distribution warehouse and the secondary distribution warehouse;

respectively estimating the manufacturer'"'"'s total cost and the distributor'"'"'s total cost according to the manufacturer'"'"'s information and the distributor'"'"'s information;

estimating a minimum of a joint cost obtained by adding the manufacturer'"'"'s total cost and the distributor'"'"'s total cost for calculating an approximate solution of the product lot, so as to obtain the product lot and a delivery times of the deteriorating item to be delivered from the manufacturer to the distributor in a planning horizon;

comparing the respective joint costs with the delivery times of n, n+1 and n−

1 based on the product lot, wherein n is a positive number and an initial value thereof is 1; and

when the joint cost with the delivery times of n is greater than the joint cost with the delivery times of n+1, or when the joint cost with the delivery times of n is greater than the joint cost with the delivery times of n−

1, adding 1 to n and repeatedly calculating another approximate solution of the product lot until the joint cost with the delivery times of n is less than or equal to the-joint cost with the delivery times of n+1, and meanwhile the joint cost with the delivery times of n is also less than or equal to the joint cost with the delivery times of n−

1.

9. The method for calculating a minimum joint cost as claimed in claim 8, wherein the steps of estimating the manufacturer'"'"'s total cost comprise:

estimating the manufacturing inventory level according to a production rate and a manufacturing inventory deteriorating rate; and

estimating the manufacturer'"'"'s total cost according to a setup cost, a manufacturing holding cost, the delivering frequency, the manufacturing inventory level and the manufacturing deteriorating cost of the manufacturer.

10. The method for calculating a minimum joint cost as claimed in claim 9, wherein the steps of estimating the manufacturer'"'"'s total cost further comprise:

estimating the setup cost according to a time value of money, the delivering frequency and a product manufacturing period;

estimating the manufacturing holding cost according to the manufacturing inventory level, the time value of money and the product manufacturing period; and

estimating the manufacturing deteriorating cost according to the manufacturing inventory deteriorating rate, the delivering frequency and the product manufacturing period.

11. The method for calculating a minimum joint cost as claimed in claim 8, wherein the steps of estimating the distributing total cost comprise:

respectively estimating the distributing inventory levels of the primary distribution warehouse and the secondary distribution warehouse according to a market demand and the respective distributing inventory deteriorating rates of the primary distribution warehouse and the secondary distribution warehouse;

calculating a payable interest and an earning interest when the distributor delays to pay the manufacturer; and

estimating the distributing total cost according to the delivering frequency, an;

ordering cost of the distributor, the respective distributing holding costs, the respective distributing inventory levels and the respective distributing deteriorating costs of the primary distribution warehouse and the secondary distribution warehouse, a shortage cost, the payable interest and the earning interest.

12. The method for calculating a minimum joint cost as claimed in claim 11, wherein the steps of estimating the distributing total cost further comprise:

estimating the ordering cost according to a time value of money, the delivering frequency and a product manufacturing period;

respectively estimating distributing holding costs of the primary distribution warehouse and the secondary distribution warehouse according to the respective distributing inventory levels and respective demand periods of the primary distribution warehouse and the secondary distribution warehouse, and the time value of money;

estimating the shortage cost according to a unit shortage cost, a distribution shortage time, the market demand and the delivering frequency; and

estimating the respective distributing deteriorating costs of the primary distribution warehouse and the secondary distribution warehouse according to respective distributing inventory deteriorating rates, the respective demand periods of the primary distribution warehouse and the secondary distribution warehouse, and the delivering frequency.

13. The method for calculating a minimum joint cost as claimed in claim 8 further comprising:

verifying whether the respective approximate solutions of the product lot and distributing frequency n have minimum values according to a Hessian matrix.