Analysis of three level supply chain of inventory with deterioration for multi-items

The objective of this study is to generalize the three echelon supply chain model proposed by Jaber and Goyal (2008) Jaber, M. Y., & Goyal, S. K. (2008). Coordinating a three-level supply chain with multiple suppliers, a vendor and multiple buyers. International Journal Production Economics, 116, 95-103. for multi-items, where single item was considered in production and distribution. This article develops the coordination amongst different parties in a three-echelon supply chain with a centralized decision process. Producer, suppliers and retailers are the parties of the supply chain where multiple suppliers deliver various types of raw materials to a producer; producer produces different types of items, multi-items, in different units of the factory and supplies the items to multiple retailers. Different deterioration rates for finished items and raw materials are also considered. The model developed of this article guarantees that, the local costs for the members either remain the same as before coordination, or decrease as a result of coordination.