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
An integrated vendor-buyer inventory model with backorder price discount and effective investment to reduce ordering cost
TL;DR: The purpose of this article is to investigate in the continuous review model with backorder price discount and variable lead time to effectively increase investment and to reduce the joint expected annual total cost.
Journal ArticleDOI
Coordination between vendor and buyer considering trade credit and items of imperfect quality
Liang-Hsuan Chen,Fu Sen Kang +1 more
TL;DR: To establish a cooperative relationship between the vendor and buyer for a win-win situation, a simple solution algorithm is presented to determine the cost saving of each side when the warranty cost per unit is increased.
Journal ArticleDOI
The optimal pricing and ordering policy for an integrated inventory model when trade credit linked to order quantity
TL;DR: In this article, the authors present a stylized model to determine the optimal strategy for an integrated vendor-buyer inventory system under the condition of trade credit linked to the order quantity, where the demand rate is considered to be a decreasing function of the retail price.
Journal ArticleDOI
Some models for understanding the cooperation between the supplier and the buyer
Moosa Sharafali,Henry C. Co +1 more
TL;DR: In this paper, the authors present some stochastic models of cooperation between the supplier and the buyer in order to motivate the buyer to cooperate, including the impact of price changes, discount policies and partial deliveries.
Journal ArticleDOI
The multi-item replenishment problem in a two-echelon supply chain: the effect of centralization versus decentralization
Jen Ming Chen,Tsung-Hui Chen +1 more
TL;DR: This paper proposed both centralized and decentralized decision models to determine the best solution to minimize costs in a joint replenishment arrangement with a two-echelon supply chain, and proved the optimal properties of the models, developed a search algorithm and numerically illustrated the benefits generated from such an arrangement.
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.