IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v118y2009i1p185-188.html
   My bibliography  Save this article

An integrated equal-lots policy for shipping a vendor's final production batch to a single buyer under linearly decreasing demand

Author

Listed:
  • Omar, Mohd

Abstract

This paper considers a supply chain in which a vendor supplies a product to a buyer. The vendor is about to manufacture the final batch of the product at a finite rate and then periodically ship the output to the buyer. The buyer then consumes the product at a linearly decreasing demand rate. Most previous work on this topic has been based on the assumption of fixed demand rate. Costs are attached to the manufacturing batch set-up, the delivery of a shipment, and stockholding at the vendor and buyer. The objective is to determine the number of shipments and sizes of those shipments which minimise the total cost--assuming the vendor and buyer collaborate and find a way of sharing the consequent benefits. We show how the optimal policy may be derived when the shipments size are identical. We illustrate this policy with numerical examples.

Suggested Citation

  • Omar, Mohd, 2009. "An integrated equal-lots policy for shipping a vendor's final production batch to a single buyer under linearly decreasing demand," International Journal of Production Economics, Elsevier, vol. 118(1), pages 185-188, March.
    • Handle: RePEc:eee:proeco:v:118:y:2009:i:1:p:185-188
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(08)00263-6
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lu, Lu, 1995. "A one-vendor multi-buyer integrated inventory model," European Journal of Operational Research, Elsevier, vol. 81(2), pages 312-323, March.
    2. Goyal, S. K., 1995. "A one-vendor multi-buyer integrated inventory model: A comment," European Journal of Operational Research, Elsevier, vol. 82(1), pages 209-210, April.
    3. Goyal, S. K. & Giri, B. C., 2003. "A simple rule for determining replenishment intervals of an inventory item with linear decreasing demand rate," International Journal of Production Economics, Elsevier, vol. 83(2), pages 139-142, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huang, Chao-Kuei & Tsai, Deng-Maw & Wu, Ji-Cheng & Chung, Kun-Jen, 2010. "An optimal integrated vendor-buyer inventory policy under conditions of order-processing time reduction and permissible delay in payments," International Journal of Production Economics, Elsevier, vol. 128(1), pages 445-451, November.
    2. Wee, Hui Ming & Widyadana, Gede Agus, 2013. "Single-vendor single-buyer inventory model with discrete delivery order, random machine unavailability time and lost sales," International Journal of Production Economics, Elsevier, vol. 143(2), pages 574-579.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Tinglong & Liang, Liang & Yu, Yugang & Yu, Yan, 2007. "An integrated vendor-managed inventory model for a two-echelon system with order cost reduction," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 241-253, September.
    2. Affisco, John F. & Javad Paknejad, M. & Nasri, Farrokh, 2002. "Quality improvement and setup reduction in the joint economic lot size model," European Journal of Operational Research, Elsevier, vol. 142(3), pages 497-508, November.
    3. Bylka, Stanislaw, 2003. "Competitive and cooperative policies for the vendor-buyer system," International Journal of Production Economics, Elsevier, vol. 81(1), pages 533-544, January.
    4. Chiou, Chuang-Chun & Yao, Ming-Jong & Tsai, Jenteng, 2007. "A mutually beneficial coordination mechanism for a one-supplier multi-retailers supply chain," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 314-328, July.
    5. Kaya, Onur & Kubalı, Deniz & Örmeci, Lerzan, 2013. "A coordinated production and shipment model in a supply chain," International Journal of Production Economics, Elsevier, vol. 143(1), pages 120-131.
    6. Sarmah, S.P. & Acharya, D. & Goyal, S.K., 2006. "Buyer vendor coordination models in supply chain management," European Journal of Operational Research, Elsevier, vol. 175(1), pages 1-15, November.
    7. Lee, Wenyih, 2005. "A joint economic lot size model for raw material ordering, manufacturing setup, and finished goods delivering," Omega, Elsevier, vol. 33(2), pages 163-174, April.
    8. Viswanathan, S., 1998. "Optimal strategy for the integrated vendor-buyer inventory model," European Journal of Operational Research, Elsevier, vol. 105(1), pages 38-42, February.
    9. Chung, Chun Jen & Wee, Hui Ming, 2007. "Optimizing the economic lot size of a three-stage supply chain with backordering derived without derivatives," European Journal of Operational Research, Elsevier, vol. 183(2), pages 933-943, December.
    10. Liu, Xingchu & Cetinkaya, Sila, 2007. "A note on "quality improvement and setup reduction in the joint economic lot size model"," European Journal of Operational Research, Elsevier, vol. 182(1), pages 194-204, October.
    11. Bylka, Stanislaw, 2009. "Non-cooperative strategies for production and shipments lot sizing in the vendor-buyer system," International Journal of Production Economics, Elsevier, vol. 118(1), pages 243-252, March.
    12. Gümüs, Mehmet & Jewkes, Elizabeth M. & Bookbinder, James H., 2008. "Impact of consignment inventory and vendor-managed inventory for a two-party supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 502-517, June.
    13. Hill, Roger M., 1997. "The single-vendor single-buyer integrated production-inventory model with a generalised policy," European Journal of Operational Research, Elsevier, vol. 97(3), pages 493-499, March.
    14. Zhou, Yong-Wu & Wang, Sheng-Dong, 2007. "Optimal production and shipment models for a single-vendor-single-buyer integrated system," European Journal of Operational Research, Elsevier, vol. 180(1), pages 309-328, July.
    15. Ho, Chia-Huei & Ouyang, Liang-Yuh & Su, Chia-Hsien, 2008. "Optimal pricing, shipment and payment policy for an integrated supplier-buyer inventory model with two-part trade credit," European Journal of Operational Research, Elsevier, vol. 187(2), pages 496-510, June.
    16. Ben-Daya, M. & Hariga, M., 2004. "Integrated single vendor single buyer model with stochastic demand and variable lead time," International Journal of Production Economics, Elsevier, vol. 92(1), pages 75-80, November.
    17. Abdul-Jalbar, Beatriz & Gutierrez, Jose M. & Sicilia, Joaquin, 2007. "An integrated inventory model for the single-vendor two-buyer problem," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 246-258, July.
    18. David, Israel & Eben-Chaime, Moshe, 2003. "How far should JIT vendor-buyer relationships go?," International Journal of Production Economics, Elsevier, vol. 81(1), pages 361-368, January.
    19. Sarker, Bhaba R. & Rochanaluk, Ratkrit & Yi, Huizhi & Egbelu, Pius J., 2014. "An operational policy for a three-stage distributive supply chain system with retailers’ backorders," International Journal of Production Economics, Elsevier, vol. 156(C), pages 332-345.
    20. Sucky, Eric, 2006. "A bargaining model with asymmetric information for a single supplier-single buyer problem," European Journal of Operational Research, Elsevier, vol. 171(2), pages 516-535, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:118:y:2009:i:1:p:185-188. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.