Ming-Hon Hwang

Development of a supplier selection approach from the viewpoint of the entire supply chain

Many research experts and industry executives point out that the industry competition is not only between enterprises, but also between supply chains. With tight connections and cooperation between supply chain members, the supply chain can increase values for end customers and gains competitive advantage. Meanwhile, such relationships also create win-win situations among supply chain members. Thus, selecting supply chain members which includes supplier selection is a very important task in the supply chain management. Many studies have mentioned the importance of supplier selection in supply chain management, and have established methods and criteria for supplier selection. However, few studies considered the supplier selection from the perspective of the entire supply chain. Thus, this study proposes a new supplier selection approach that considers the entire supply chain in order to maximize the performance of the entire supply chain. We believe that our approach can be served as a supplier selection tool for improving supply chain performance.

A simple method to investigate retailer's ordering policy for the EPQ model under trade credit derived without calculus

Huang and Huang [International Journal of Systems Science Vol. 39 (2008), pp. 539–546] offered the algebraic approach to investigate the retailers replenishment policy under trade credit on the economic production quantity (EPQ) model. In this paper, we propose an arithmetic-geometric mean inequality method to simplify the algebraic method of completing perfect square established by Huang and Huang (2008) to find the optimal solution under the annual total relevant cost minimized. The proposed method is easy-to-understand and simple-to-use.

A simple method to investigate the effect of service constraint on EPQ model

Huang [Mathematical Problems in Engineering, Vol. 2006, ID 79028, pp. 1–5] offered the algebraic approach to investigate the effect of service level constraint on the economic production quantity (EPQ) model with random defective rate. In this paper, we propose an arithmetic-geometric mean inequality method to simplify the algebraic method of completing perfect square established by Huang (2006) to find the optimal solution under the expected annual cost minimized. The proposed method is easy-to-understand and simple2 to-use.

Establishment of an outsourcing selection model for supply chain management

Supply chain management continues to be the focus of considerable research. Many experts and industry executives point out that not only is competition between enterprises, it is also between supply chains. With strong connections and cooperation between supply chain members, the supply chain increases value for end customers and gains competitive advantage, such relationships also create win–win relationships among supply chain members. Thus, selecting supply chain members which includes outsourcing selection is a very important task in supply chain management. Many studies have mentioned the importance of outsourcing selection in supply chain management, and have established methods and criteria for outsourcing selection. However, few studies considered the outsourcing selection from the perspective of the entire supply chain. Thus, we propose an outsourcing selection model for a supply chain. The outsourcing company selected using this model will maximize performance of the entire supply chain. Additionally, this method also calculates the objective of the supply chain with the involvement of the new outsourcing company to the supply chain and resets the objectives for all supply chain members.

Determining optimal lot size problem with rework and multiple deliveries using algebraic approach

This paper presents an algebraic approach for determining optimal lot size for economic production quantity (EPQ) model with rework and multiple deliveries. Conventional methods for solving production lot size are by using diff erential calculus on the longrun average production-inventory-delivery cost function with the need to prove optimality first. This paper shows that optimal lot size and its related costs for the aforementioned EPQ model can be derived without derivatives. As a result, it enables students and/or practitioners who with little knowledge of calculus to understand and handle with ease the realistic EPQ systems

Optimal retailer's ordering policy with deteriorating items under twolevel trade credit

In practice, in the supply chain there are two levels of trade credit: one is offered to the retailer from its supplier; the other is offered to the customer from its retailer. Moreover, the commodity under consideration usually deteriorates over time. The present study therefore proposes a retailers EOQ (economicorder quantity) model by considering deteriorating items under two-level trade credit. The proposed model takes into account both levels of trade credit. In the first place, the authors model the retailers inventory decision as a cost minimization problem. Secondly, the authors prove the convexity of the inventory function in terms ofrelevant annual costs. The authors then move on to construct an easy-to-use theorem to efficiently determine the optimal replenishment cycle, hence, the optimal order quantity. Finally, the authors provide several numerical examples to illustrate the theorem and to conduct a sensitivity analysis. Based on the proposedmodel, theauthors conclude that a longer replenishment cycle (a larger order quantity) is directly related to a higher ordering cost, and, is inversely related to a higher deteriorating rate.

An EPQ model under process unreliability without calculus

Huang et al. [Journal of Information & Optimization Sciences, Vol. 29, No. 5, pp 923–929] investigated an optimal inventory policy for imperfect quality production system where the products produced are a mixture of perfect and imperfect quality. But we fi nd a small shortcoming in their model. Therefore, this article willcorrect the shortcoming and use two methods to fi nd the optimal solution under the annual profi t maximized without derivatives. The proposed methods are easy-to-understand and simple-to-use.