%0 Journal Article
%T Coordinating a two-echelon supply chain under inflation and time value of money
%A B.C. Giri
%A S. Bardhan
%J International Journal of Industrial Engineering Computations
%D 2011
%I Growing Science
%X In the current global economic scenario, inflation plays a vital role in deciding optimal pricing of goods in any business entity. This paper develops a two-echelon (manufacturer-buyer) supply chain model taking into account inflation and time value of money. The present value of the total cost of the supply chain is derived when the manufacturer produces a number of lots, the sum of which is equal to the buyer¡¯s total demand over a time horizon and the manufacturer¡¯s each production lot is delivered to the buyer in n shipments. The optimal solution of the model is obtained for a numerical example after some adjustments (required to exhibit feasibility) in the derived solution. Sensitivity analysis is also carried out in order to examine the effects of changes in model-parameters on the optimal solution.
%K Supply chain
%K Inflation
%K Time value of money
%U http://www.growingscience.com/ijiec/Vol2/IJIEC_2011_30.pdf