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 supply chain model with errors in quality inspection and learning in production
TL;DR: This paper provides a simple but integrated mathematical model for determining an optimal vendor–buyer inventory policy by accounting for quality inspection errors at the buyer's end and learning in production at the vendor’s end to minimize the joint annual cost incurred in the supply chain.
Journal ArticleDOI
Optimal pricing, shipment and payment policy for an integrated supplier–buyer inventory model with two-part trade credit
TL;DR: An iterative algorithm is established to obtain the optimal pricing, ordering, shipping, and payment policy to maximize the joint expected total profit per unit time.
Journal ArticleDOI
EOQ models for a coordinated two-level international supply chain considering imperfect items and environmental impact
TL;DR: In this article, the optimal production-shipment policy for items with imperfect quality in three different scenarios is presented to minimize the total expected cost per unit time in a two-level supply chain.
Journal ArticleDOI
Modelling an industrial strategy for inventory management in supply chains: The 'Consignment Stock' case
Marcello Braglia,Lucio Zavanella +1 more
TL;DR: In this article, an analytical model for the problem of a single-vendor and single-buyer productive situation is presented, and a comparison with the optimal solution available in the literature is made.
Journal ArticleDOI
Production and shipment lot sizing in a vendor–buyer supply chain with transportation cost
TL;DR: This study analyzes the vendor–buyer lot-sizing problem under equal-size shipment policy and introduces the complete solution of the problem in an explicit and extended manner that has not existed in the literature.
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.