A Mathematical Model for Tactical Operations Planning for Response-Base Supply Chains

This article explores the issue of lead-time in response-based supply chains. From a tactical viewpoint of response-based supply chains, the processing time for each stage is assumed to be a random variable since different practices exist in the selection pool of each stage under a specific lead-time requirement. The decision-maker must select suitable practices of operations for each stage to ensure that the lead time meets a desired requirement. The relationship and the trade-off between the operating costs for the selected practices and the inventory holding cost of safety stock that is in turn affected by the lead-time are discussed. A mathematical model for planning the operations from a manufacturer viewpoint is proposed. The variation in practical situation for the proposed model is also addressed. A hypothetic example is provided to illustrate the effectiveness of the proposed model. With reference to the computational results, the effect of several parameters on the model’s optimal solutions was discussed.