An improved consignment stock policy under stochastic lead times for effective inventory management in supply chains

Abstract

This paper describes the characteristic features of the stock monitoring and control known as consignment stock (CS) as well as the Hill's inventory model in supply chain management for a single vendor -single buyer under stochastic nature. The manufacturing system lead-time has been crashed in CS-LT stochastic model to minimize the joint total expected cost (JTEC) with simultaneously optimizing the decision variables so as to gain the competitive advantage in business.