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
Production and delivery policies for enhanced supply chain partnerships
TL;DR: In this article, the benefits of buyer-supplier partnerships over lot-for-lot, i.e., single setup single delivery (SSSD) systems, are examined and two policies that the supplier can pursue in order to meet customers' needs are suggested.
Journal ArticleDOI
Investing in lead-time variability reduction in a collaborative vendor-buyer supply chain model with stochastic lead time
TL;DR: A logarithmic investment function is used that allows investment to be made to reduce lead-time variability by using the proposed supply chain model, and considerable savings can be achieved to increase the competitive edge.
Journal ArticleDOI
Policies for a single-vendor multi-buyer system with finite production rate
TL;DR: A multi-echelon inventory system in which one vendor supplies an item to multiple buyers and a heuristic procedure is developed to determine the order quantities at the buyers and the production and shipment schedule at the vendor in order to minimize the average total cost per unit time.
Journal ArticleDOI
Two-echelon supply chain coordination under information asymmetry with multiple types
TL;DR: It is shown that the retailer’s lying behaviour is more complex than simply lying to have higher costs and it is proved a sufficient condition to guarantee unique contracts in the optimal solution for a general number of retailer types.
Journal ArticleDOI
Coordinating supplier retailer and carrier with price discount policy
Liying Li,Yong Wang,Wei Dai +2 more
TL;DR: In this article, the authors add a carrier to a supplier-retailer system and analyze the effect of double marginalization on pricing policies, and show that joint profit increases because demand increases, whereas unit operating cost decreases as a result of joint coordination.
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.