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
Determination of suppliers' optimal quantity discount schedules with heterogeneous buyers
TL;DR: In this paper, the authors present an analysis of a supplier's quantity discount decision when there are many buyers with different demand and cost structures, using a common discrete all-unit quantity discount schedule with many break points.
Journal ArticleDOI
A Game‐Theoretic Approach to Quantity Discount Problems*
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An optimization approach for joint pricing and ordering problem in an integrated inventory system with order-size dependent trade credit
TL;DR: In this study, an integrated inventory model with a price sensitive demand rate, determining jointly economic lot size of the buyer's ordering and the supplier's production batch, are developed to maximize the total profit per unit time.
Journal ArticleDOI
A study of quantity discount pricing models with different ordering structures: Order coordination, order consolidation, and multi-tier ordering hierarchy
TL;DR: In this article, the authors consider the case when the buyers place a combined (single) order with the supplier (referred to as "order consolidation") and derive the sufficiency conditions that determine when "order coordination" would be preferable.
Journal ArticleDOI
The Buyer-Vendor Coordination Problem: Modeling Inbound and Outbound Cargo Capacity and Costs
TL;DR: In this article, the deterministic demand buyer-vendor coordination problem is generalized to simultaneously consider cargo capacity constraints and general inbound/outbound transportation costs, and the error bounds for these heuristics are 6 and 25%, respectively.
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.