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
Learning and screening errors in an EPQ inventory model for supply chains with stochastic lead time demands
TL;DR: The analysis shows that delay in transportation lead time forces the buyer to carry more inventories to avoid shortages and learning in production keeps on reducing the total cost of the supply chain up to a threshold.
Journal ArticleDOI
Simultaneous Improvement of Supplier's Profit and Buyer's Cost by Utilizing Quantity Discount
Kap Hwan Kim,Hark Hwang +1 more
TL;DR: In this paper, the authors analyzed how the supplier can formulate the terms of a quantity-discount pricing schedule, assuming that the buyer always behaves optimally, and derived formulas for price and order size which maximize the economic gain of the supplier resulting from revising prices and order sizes.
Journal ArticleDOI
Two-echelon fuzzy stochastic supply chain for the manufacturer---buyer integrated production---inventory system
TL;DR: This paper deals with two-echelon integrated procurement production model for the manufacturer and the buyer integrated inventory system, and proposes an algorithm to derive the optimal policies for both parties in fuzzy stochastic environment.
Journal ArticleDOI
A Production Inventory Model for Deteriorating Items with Collaborative Preservation Technology Investment Under Carbon Tax
TL;DR: In this paper, the authors investigate a production inventory model for deteriorating items under a carbon tax policy and collaborative preservation technology investment from the perspective of supply chain integration, and determine the optimal production, delivery, ordering, and investment policies for the buyer and vendor that maximize the joint total profit per unit time in consideration of the tax policy.
Journal ArticleDOI
Optimal lot-sizing and shipment decisions in a three-echelon supply chain for growing items with inventory level- and expiration date-dependent demand
TL;DR: In this article, an integrated model for inventory control in a three-echelon supply chain for growing items, with farming, processing and retail echelons, is formulated, and the effectiveness of a profit enhancement mechanism which relaxes the traditional zero-ending inventory policy at the retail end of the supply chain is investigated.
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.