Abstract
In this paper, we first consider a single-vendor single-buyer integrated inventory model. The vendor’s daily production rate is assumed to be less than the daily demand. To meet the demand, the vendor adopts overtime strategy to increase the production capacity. However, when overtime occurs, the number of departing employees for the vendor is not constant but varies with overtime. We obtain the optimal ordering quantity, overtime working hours, the number of shipments and overtime days by minimizing the daily total cost of the model. Then, we extend the integrated model by considering that a vendor supplies multiple buyers. In this model, we assume that the vendor’s production cycle equals to the sum of production cycles for all buyers. Based on mathematical analysis of the integrated system, a lipschitz iterative method is proposed to obtain the optimal ordering and overtime strategy. Numerical example and sensitivity analysis about this case have been drawn to present some insights into parameter effect on the optimal ordering and overtime strategy.
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This work is supported by National Nature Science Foundation of China under Grants No. 71971010 and 71571006.
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Sun, X., Zhang, R. (2020). Impacts of Employee Turnover on the Integrated Inventory Model When Overtime Occurs. In: Rau, PL. (eds) Cross-Cultural Design. User Experience of Products, Services, and Intelligent Environments. HCII 2020. Lecture Notes in Computer Science(), vol 12192. Springer, Cham. https://doi.org/10.1007/978-3-030-49788-0_11
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