scispace - formally typeset
Journal ArticleDOI

A joint economic-lot-size model for purchaser and vendor

Avijit Banerjee
- 01 Jul 1986 - 
- Vol. 17, Iss: 3, pp 292-311
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 disadvantage

read more

Citations
More filters
Book ChapterDOI

Modeling and Simulation of a Centralized Supply Chain Distribution System for a Single Product in Uncertain Demand

TL;DR: In this article, a cost optimization model for a centralized supply chain distribution system for a single product in uncertain demand is presented, which includes multiple manufacturers, multiple distribution centers and multiple retailers.
Journal Article

A Coordinated Planning Model with Price-Dependent Demand

TL;DR: In this paper, the authors presented a coordinated planning model of price-dependent demand for a single manufacturer and a single retailer, where the manufacturer and retailer coordinate with each other to jointly determine the retail selling price and the retailer order quantity to maximize the joint expected total profit.
Journal ArticleDOI

An economic production-shipment strategy for the integrated vendor-buyer cooperative inventory model

TL;DR: In this article, the authors developed a model to determine an optimal integrated vendor-buyer inventory policy, where the aim is to minimize the total joint annual costs incurred by the vendor and the buyer.

MODELLING THE COORDINATED SUPPLY CHAIN NETWORK (Pemodelan Rangkaian Rantaian Bekalan Terkoordinasi)

TL;DR: In this paper, the problem of reconfiguring the supply chain network to significantly improve customer service levels and reduce system wide cost is considered, where inventory and production cycles are assumed synchronised across the entire supply chain.
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.
Related Papers (5)