Journal ArticleDOI
A joint economic-lot-size model for purchaser and vendor
TLDR
In this article, a joint economic-lot-size model for a special case where a vendor produces to order for a purchaser on a lot-for-lot basis under deterministic conditions is developed.Abstract:
In a typical purchasing situation, the issues of price, lot sizing, etc, usually are settled through negotiations between the purchaser and the vendor Depending on the existing balance of power, the end result of such a bargaining process may be a near-optimal or optimal ordering policy for one of the parties (placing the other in a position of significant disadvantage) or, sometimes, inoptimal policies for both parties This paper develops a joint economic-lot-size model for a special case where a vendor produces to order for a purchaser on a lot-for-lot basis under deterministic conditions The focus of this model is the joint total relevant cost It is shown that a jointly optimal ordering policy, together with an appropriate price adjustment, can be beneficial economically for both parties or, at the least, does not place either at a disadvantageread more
Citations
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Journal ArticleDOI
Development of a Joint Economic Lot Size Model with Stochastic Demand Within non-equal shipments
TL;DR: In this paper, the authors considered that unsatisfied demand can be backordered and lost, as well as considering a service level constraint, and proposed an exact heuristic algorithm to minimize both buyer and vendor costs.
Journal ArticleDOI
Vendor-buyer ordering policy when demand is trapezoidal
Nita H. Shah,Digeshkumar B. Shah +1 more
TL;DR: In this paper, a joint vendor-buyer strategy is analyzed which is beneficial to both the players in the supply chain and a negotiation factor is incorporated to share the cost savings, which is established numerically that the joint venture decreases the total cost of the supply supply chain when compared with the independent decision of the buyer.
Optimal integrated inventory policy for stock-dependent demand when trade credit is linked to order quantity
TL;DR: In this article, the joint total profit is maximized to determine buyer's order quantity and the number of shipments from the vendor to the buyer during one cycle, where demand is stock-dependent and trade credit is linked to order quantity.
Journal ArticleDOI
Coordination and Optimization: The Integrated Supply Chain Analysis with Non-Linear Price-Sensitive Demand
TL;DR: In this article, a coordinated supply chain with non-linear price sensitive demand function is considered and the solution procedures demonstrate that the individual profit as well as joint profit could be increased by coordination mechanism even though the demand function was nonlinear.
Journal ArticleDOI
Integrated model in one vendor-one customer situation when costs are fuzzy and lot sizes are deterministic
Sraboni Mandal,Danish Ali Khan +1 more
TL;DR: In this paper, an integrated inventory model considering one-vendor, one-customer in the presence of uncertainties in cost functions which can be characterised by fuzzy numbers is presented, where the vendor seeks to minimise his total annual cost subject to the maximum costs, which buyers are prepared to incur.
References
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Book
Decision Systems for Inventory Management and Production Planning
TL;DR: In this article, an in-depth discussion of the major decisions in production planning, scheduling, and inventory management faced by organizations, both private and public, is presented, as well as the latest systems used to make decisions, including Just-in-Time Manufacturing, KANBAN, Distribution Requirements Planning and PUSH Control.
Journal ArticleDOI
Eoq formula: is it valid under inflationary conditions?
TL;DR: In this paper, it was shown that changes in the inflation rate should not affect the cost of capital that is utilized in the economic order quantity (EOQ) formula for determining order quantities.
Journal ArticleDOI
The Classical Economic Order Quantity Formula
TL;DR: In this paper, a stochastic version of the classical economic lot size model is developed, which yields the traditional square root formula where the constant demand term is replaced by mean demand.