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
More filters
Posted ContentDOI
Coordinated production, ordering, shipment and pricing model for supplier-retailer inventory system under trade credit
Nita H. Shah,Monika K. Naik +1 more
TL;DR: In this paper, a combined supplier-retailer inventory model was proposed to maximize the joint profit for supplier and retailer by constructing a combined supply-retrieval inventory model, where suppliers and retailers both have implemented trade credit policies and some defective items are received by retailer.
Journal ArticleDOI
A two-echelon inventory model for fuzzy demand with mutual beneficial pricing approach in a supply chain
TL;DR: Li et al. as discussed by the authors developed a two-echelon inventory model with mutual beneficial pricing strategy with considering fuzzy annual demand; single vendor and multiple buyers in this model, they proved that the price reduction mechanism is a mutual beneficial strategic partnership between the vendor and buyers.
Journal ArticleDOI
Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy
TL;DR: This study explores a fabrication–inventory problem that considers scrap items, an acceptable level of stock outs with backordering, stochastic machine failures, and a multi-shipment policy, and an optimization method along with an algorithm is presented to derive optimal production uptime that minimizes total system costs.
BookDOI
A JELS Stochastic inventory model with random demand
TL;DR: In this article, a stochastic joint lot size model was developed in which demand of the customer and the stock level of the vendor are assumed to be identically distributed continuous random variables.
Book ChapterDOI
Revisiting Lean Manufacturing Process with Vendor Managed Inventory System
C. L. Wen,Hui-Ming Wee,Simon Wu +2 more
TL;DR: In this article, the authors apply lean manufacturing with VMI (Vendor Managed Inventory) to shorten lead time and reduce inventories and apply TOC (theory of constraints), 5W1H (who, when, where, which, what, how much) techniques to identify bottleneck and suggest continuous improvements in production, sales and supply chain management.
References
More filters
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.