Study On The Final Order Models

Nowadays, with the rapid development of technology, products or spare parts are replaced at an unprecedented rate. And this situation has led to popularity of the obsolescent spare parts problem. As the most effective approach to resolve the above issue, the final order has arouse more and more attention in Academia.The final order means that parts suppliers allow goods producers to procure spare parts for the last time to meet all the demand in the maintenance warranty, once one product or part experiencing stop production due to technical updates and other reasons. In this sense, the study on the final order is to find the proper amount to order.This paper studies the final order from two stand points: firstly, formulates a model to minimize the cost of the goods producers in a decentralized supply chain from the individual point; secondly, formulates two models to minimize the total cost of the parts suppliers and the goods producers in a secondary centralized supply chain from the system stand point. The two models are respectively with contract of quantity discount in the forward supply chain, and with contract of recovery and quantity discount in the closed-loop supply chain. The paper solves the final order models using mathematical difference method in considering random parts demand and demand time. The result shows the best final order model through comparison of different models. Finally, a practical example is given to demonstrate the effects of different final order models.