Sign In


College of Computing and Mathematics


Industrial and Systems Engineering Department


Presents a Seminar on


"A Single-vendor Single-manufacturer integrated inventory model with stochastic demand and variable production rate"



Date: Wednesday, May 11, 2022

Time: 2:30 PM – 3:00 PM

Location: MS Team - Click here to join



Engr. Qusai Karrar,

M.Sc Student,

Industrial and Systems Engineering Department



In this seminar, we will investigate an alternative way to react to demand uncertainty in an integrated inventory model, namely the variation of the production rate that enables the manufacturer to reduce lead times and the corresponding demand uncertainty. To investigate the impact of variable production rates on the supply chain, we consider a single-vendor single-manufacturer integrated inventory model where the vendor ships finished products in multiples of full truckloads to the manufacturer. The model's objective is to coordinate both the production and distribution of the product so that the total costs of the supply chain are minimized. A solution procedure is suggested, and the model's behavior is analyzed in numerical examples. The total supply chain cost is reduced when the manufacturer's production rate is included as a decision variable in the model. These savings can generally benefit both the vendor and the manufacturer. However, when coordinated decision-making is initially not beneficial to the vendor, the supply chain members can benefit from a revenue-sharing contract that supports sharing the total savings. The proposed model supports the determination of an optimal production rate and the distribution of coordination benefits among the supply chain members.


Speaker Bio:

Qusai Mohammed Karrar is a full-time M.Sc. student in the industrial and systems engineering department at KFUPM, Dhahran, Saudi Arabia. His research interests include Supply Chain optimization and operation research.


All faculty, researchers and graduate students are invited to attend.



Industrial and Systems Engineering Department, College of Computing and Mathematics

Telephone: +966 (13) 860 2988, Email:, Website:


Copyright © 2014 King Fahd University of Petroleum & Minerals



11 May 2022


02:30 PM to 03:00 PM