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A Joint Eoq Model For Supplier And Retailer With Deteriorating Items

Author

Listed:
  • CHINHO LIN

    (Department of Industrial and Information Management & Institute of Information Management, National Cheng Kung University, Tainan, Taiwan, ROC)

  • YIHSU LIN

    (Department of Industrial and Information Management, National Cheng Kung University, Tainan, Taiwan, ROC;
    Center of General Education, Southern Taiwan University of Technology, Tainan, Taiwan, ROC)

Abstract

The paper studies the joint inventory model between supplier and retailer relying on mutual cooperation. Unlike other studies, the deteriorated rate and partial back-ordering are consistent with assumptions for dealing with more general cases. Since it is difficult to solve this problem directly, we derived the sufficient and necessary conditions in the planning horizon, and proposed a procedure to find the optimal solution. Numerical examples and sensitivity analyses are also provided to illustrate the solution procedure. The results reveal that the extensions of the model provide a wider and reasonable situation in practice, and that they also reduce the total cost.

Suggested Citation

  • Chinho Lin & Yihsu Lin, 2004. "A Joint Eoq Model For Supplier And Retailer With Deteriorating Items," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 163-178.
    • Handle: RePEc:wsi:apjorx:v:21:y:2004:i:02:n:s0217595904000114
    DOI: 10.1142/S0217595904000114
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    Cited by:

    1. Lee, Sunghee & Kim, Daeki, 2014. "An optimal policy for a single-vendor single-buyer integrated production–distribution model with both deteriorating and defective items," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 161-170.
    2. Pahl, Julia & Voß, Stefan, 2014. "Integrating deterioration and lifetime constraints in production and supply chain planning: A survey," European Journal of Operational Research, Elsevier, vol. 238(3), pages 654-674.

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