1866 JOURNAL OF COMPUTERS, VOL. 6, NO. 9, SEPTEMBER 2011 Table 4 The optimal solutions to the model K * L * T * Buyer 1 R1 S1 Buyer 2 R2 S2 Buyer 3 R3 S3 supplier Rv Sv ETC 2 0.002 0.0639 754 1 808 1 1197 1 3803 2 23101.9 Note: S1, S2, S3 for the buyer’s expected shortages in the replenishment cycle, Sv for the supplier’s expected shortages in the delivery period. From the table 3 we can get the conclusion that the [8] Reve, T., and Johansen, E. Organizational Buying in the total cost curve shows the convex trends: The optimal Offshore Oil Industry. Industry Marketing Management, shipping times per production cycle for the manufacturer is 2 times. However, compared to the case <strong>of</strong> not considering the shortening delivery time (L*=L0), the best common replenishment cycle <strong>of</strong> the buyer T* is reduced by the 0.06414 years to 0.06390 years, the best replenishment lead time <strong>of</strong> the buyer L* is reduced to 1982,(11):275-282. [9] Silver, E. and Peterson, P., Decision System for Inventory Management and Production Planning, 2nd ed., Wiley, New York, 1985. [10] Miller, D. and Dorge, C. Psychological and Traditional Determinants <strong>of</strong> Structure Administrative Science Quarterly, 1986, 31: 539-560. 0.002 years. In addition, the table 4 shows that, all the [11] Malone, W., Yates, J. and Benjamin, I. Electronic Markets safety factors Z1*, Z2*, Z3* <strong>of</strong> the lead time <strong>of</strong> the buyer and Electronic Hierarchies. Communications <strong>of</strong> the ACM, 1, 2, 3, are 2.326, 99% service level, that is, the buyers’ 1987,30(6):484-497. replenishment target level per cycle is 753, 808, 1197 units, the expected shortages per cycle is 1 unit. The safety factor Zv* <strong>of</strong> the supplier’s lead time is 2.326 too, that is, the supplier’s replenishment target level per cycle is 3803 units, the expected shortages per cycle is 2 units. At the time, the optimal total cost <strong>of</strong> the supply chain per [12] Novack, A., and Simco, W. The Industrial Procurement Process: A Supply Chain Perspective. <strong>Journal</strong> <strong>of</strong> Business Logistics, 1991,12,(1):145-167. [13] Liao, C.J., and Shyu, C.H., An analytical determine <strong>of</strong> lead time with normal demand, International <strong>Journal</strong> <strong>of</strong> Operations and Production Management, 1991, l7, 4:115- 124. unit time is $23101.9, go down 2.2% compared to case <strong>of</strong> [14] Ballou, R. H., Business Logistics Management, 3rd ed., the supplier not allow to shorten the delivery. Prentice-Hall, Englewood Cliffs, NJ, 1992. [15] Davis, T. Effective Supply Chain Management. Sloan V. CONCLUSION Man-agement Review (Summer), 1993: 35-46. [16] Lee, H. L. and C. Billington, Material management in To the supply chain management, the lead time has a decentralized supply chains. 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