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Journal of Applied Sciences
  Year: 2008 | Volume: 8 | Issue: 18 | Page No.: 3214-3220
DOI: 10.3923/jas.2008.3214.3220
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Determining the Order Penetration Point in Auto Export Supply Chain by the Use of Dynamic Programming

M. Ahmadi and E. Teimouri

In this study, after studying the characteristics and concepts relating to the Order Penetration Point (OPP), a dynamic programming model which determines this point in auto export supply chain was proposed. One of the most important characteristics of this supply chain was that, the product was packaged in different modules and after various stockings and passing long routs, was assembled in the target country. This modularized characteristic of the product was encouraging to explore the OPP of the chain from one point to several points in which the OPP of each module was located. Our proposed model tried to put the OPP of expensive modules (that have higher inventory holding cost) in the upstream section of the chain and puts the OPP of cheaper ones which created delay, in the downstream section of the chain. And finally, a numerical example was provided and solved to illustrate the application of our proposed model.
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How to cite this article:

M. Ahmadi and E. Teimouri, 2008. Determining the Order Penetration Point in Auto Export Supply Chain by the Use of Dynamic Programming. Journal of Applied Sciences, 8: 3214-3220.

DOI: 10.3923/jas.2008.3214.3220






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