The 2010 International Conference on Innovation and Management, Penang, Malaysia, July 7- 10, 2010.
8.1 Results for Classical Model
The results for classical JRP model are given in Table 2a to Table 2f. Table 2a. Start solution
A B
C D
E F
G TC
k
i
1 1
1 1
1 1
1
1757.128
Q
i
0.244 0.548
0.979 1.786
2.108 4.263
5.785
Table 2b. Second Iteration
A B
C D
E F
G TC
k
i
1 1
1 2
2 2
2
1677.185 Q
i
0.377 0.848
1.515 0.691
0.816 1.649
2.238
Table 2c. Third Iteration
A B
C D
E F
G TC
k
i
1 1
2 2
2 3
3
1678.640
Q
i
0.482 1.083
0.484 0.883
1.042 0.936
1.271
Table 2d. Back to best solution so far
A B
C D
E F
G TC
k
i
1 1
1 2
2 2
2
1677.185
Q
i
0.377 0.848
1.515 0.691
0.816 1.649
2.238
Table 2e. Fourth Iteration
A B
C D
E F
G TC
k
i
1 1
1 2
2 2
3
1672.648
Q
i
0.387 0.871
1.555 0.710
0.837 1.694
1.022
Table 2f. Fifth Iteration
A B
C D
E F
G TC
k
i
1 1
1 2
2 3
3
1669.955
Q
i
0.405 0.911
1.627 0.742
0.876 0.787
1.068
The starting iteration is given in Table 2a. For all items, the values of k
i
are equal to one. It means that at least one item is ordered at every replenishment opportunity. Proceed to
iterate by looking for the ratios values which are larger than 1.4. Then, added by one their k
i
values. The Table 2d, is the same as Table 2b. It happens because Table 2c gives the total cost which is larger than Table 2b. Therefore, Table 2d gives the solution which returns to best
The 2010 International Conference on Innovation and Management, Penang, Malaysia, July 7- 10, 2010.
solution so far Table 2b. Iteration is then continued by increasing k
i
for the largest quotient value Table 2e. The final solution is obtained by the fifth iteration Table 2f. The total cost
for the classical model of JRP is 1669.955. The iteration stopps because there is no ratios value which is larger than 1.4.
8.2 Results for the Centralization System
The result for centralized system is the same as in Table 2a, because the centralization system does not depend on k
i
values. In other words, by setting the values of k
i
equal to one, the total cost of the starting solution for classical model will be the same as the total cost of
the centralized system in Eq. 15.
8.3 Results for the Decentralized system
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