1Dept of Mech Engg, PVP Siddhartha Institute of Technology, Kanuru, Vijayawada-7, A.P., India.
2Dept of Mechanical Engg, S.V.University College of Engineering, Tirupati-517502, A.P., India.
3Chalapathi Institute of Engineering and Technology, LAM, Guntur-522034, A.P., India.
The present industrial environment is sustaining with stiff competition due to the phenomena of Globalization. In order to cope with the competitiveness of the Global market, much attention has been drawn for efficient and effective management of the entire supply chain. Due to the present day scenario of Global economic melt down; the wholesale price index has been reducing where as the retailer price index has been increasing.
The present work aims at highlighting the impact of inflation and deflation on optimum replenishment quantity and the total cost of the supply chain. It also aims at studying the behavioral pattern of replenishment quantity and the total supply chain cost with respect to the change in inflation rate and deflation rate at each of the elements of the supply chain. In the proposed model the present value of total cost incurred for unit time period is considered first, then an optimal order quantity, cycle time and total cost are obtained. The model is developed for the simplest multi echelon situation of a single manufacturer supplying a single product to a single buyer, assuming the manufacturer's shipment quantity is an integer multiple of buyer's ordering quantity.
Supply chain, Global Economic melt down, Inflation, Deflation
