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
Operational economies of a process positioning determinant
TL;DR: This analysis helps resolve issues such as optimal price mark up as the product passes through various stages in the chain, optimal level of investment in modernizing manufacturing technology and equipment for faster production rate, production and delivery lot sizing, optimal acquisition cost of backward and forward integration, and optimal investment in set up cost reduction.
Journal ArticleDOI
An integrated single-vendor single-buyer targeting problem with time-dependent process mean
TL;DR: In this article, the inventory/production decisions in single-vendor single-buyer supply chain are integrated with the targeting problem, and sensitivity analysis on the model's key parameters is conducted.
Journal ArticleDOI
Consignment stock policy with unequal shipments and process unreliability for a two-level supply chain
TL;DR: This paper considers a vendor managed inventory model with consignment stock policy in which a single vendor delivers a single product to a single buyer in unequal-sized shipments and derives average expected profit of the integrated system using renewal reward theorem.
Journal ArticleDOI
Three echelon buyer--supplier delivery policy—a supply chain collaboration approach
Victor B. Kreng,Fang-Tzu Chen +1 more
TL;DR: In this paper, the authors developed a two-integrated model (TIM) and, accordingly, focused on the linkage of the two integrated models in the supply chain and found that while the retailer becomes the focal company in a supply chain, the distribution center's loss tends to be the largest.
Journal ArticleDOI
Notes on the mathematical modeling approach used to determine the replenishment policy for the EMQ model with rework and multiple shipments
TL;DR: It is demonstrated that both the optimal replenishment lot size Q ∗ and a simplified form for the long-run average cost E[TCU(Q ∗ )] for such a specific lot size problem can be derived without using differential calculus.
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.