An integrated vendor–buyer inventory model with backorder price discount and effective investment to reduce ordering cost

Lin, Yu-Jen

doi:10.1016/j.cie.2008.10.009

Cited by 77 publications

(39 citation statements)

References 31 publications

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“…Vijayashree and Uthayakumar (2015) have developed two-echelon supply chain inventory model with controllable lead time. Lin (2009) discussed an integrated vendorbuyer inventory model with backorder price discount and effective investment to reduce ordering cost. Vijayashree and Uthayakumar (2014) developed an integrated inventory model with controllable lead time and setup cost reduction for defective and non-defective items.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Taleizadeh et al (2010) proposed A particle swarm optimization approach for constraint joint single buyer-single vendor inventory problem with changeable lead time and (r, Q) policy in supply chain. Lin (2009) have considered a buyer-vendor EOQ model with changeable lead-time in supply chain. Yang et al (2007) have developed global optimal policy for vendor-buyer integrated system with just in environment.…”

Section: Literature Reviewmentioning

confidence: 99%

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A single-vendor and a single-buyer integrated inventory model with ordering cost reduction dependent on lead time

Vijayashree

Uthayakumar

2017

J Ind Eng Int

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Lead time is one of the major limits that affect planning at every stage of the supply chain system. In this paper, we study a continuous review inventory model. This paper investigates the ordering cost reductions are dependent on lead time. This study addressed two-echelon supply chain problem consisting of a single vendor and a single buyer. The main contribution of this study is that the integrated total cost of the single vendor and the single buyer integrated system is analyzed by adopting two different (linear and logarithmic) types ordering cost reductions act dependent on lead time. In both cases, we develop effective solution procedures for finding the optimal solution and then illustrative numerical examples are given to illustrate the results. The solution procedure is to determine the optimal solutions of order quantity, ordering cost, lead time and the number of deliveries from the single vendor and the single buyer in one production run, so that the integrated total cost incurred has the minimum value. Ordering cost reduction is the main aspect of the proposed model. A numerical example is given to validate the model. Numerical example solved by using Matlab software. The mathematical model is solved analytically by minimizing the integrated total cost. Furthermore, the sensitivity analysis is included and the numerical examples are given to illustrate the results. The results obtained in this paper are illustrated with the help of numerical examples. The sensitivity of the proposed model has been checked with respect to the various major parameters of the system. Results reveal that the proposed integrated inventory model is more applicable for the supply chain manufacturing system. For each case, an algorithm procedure of finding the optimal solution is developed. Finally, the graphical representation is presented to illustrate the proposed model and also include the computer flowchart in each model.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

A single-vendor and a single-buyer integrated inventory model with ordering cost reduction dependent on lead time

Vijayashree

Uthayakumar

2017

J Ind Eng Int

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“…Goyal [18] also allowed the first shipment to be made before the whole lot was produced, and proposed a policy in which the quantity delivered to the buyer was not identical every replenishment. Further literature in support of this includes [19]- [22].…”

Section: Introductionmentioning

confidence: 99%

Supply Chain Inventory Problem with Price Increased and Demand Rate Depends on Retail Price

Yang¹,

Ouyang²

2013

IJMLC

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Abstract-This study investigates the supply chain inventory problems when the supply price increases and market demand rate depends on retail price. The purpose of this study will be to determine optimal special order quantity, retail price and production cycle by maximizing the increment of joint total profit. Furthermore, due to the vendor may or not provide all the special order quantity at the buyer's next replenishment date and hence the shortage will or not occur, two specific situations are discussed in this study. A simple algorithm to find the optimal solution is developed. Finally, several numerical examples will be presented to demonstrate the developed model and solution procedure to provide manager a useful decision consultation.Index Terms-Inventory, deteriorating items, supply chain, price increase, price-dependent demand.

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“…Lin (2008) analyzed the continuous review inventory model in which he considered the lead time and ordering cost reductions work interdependently with backorder price discount. Further, Lin (2009) proposed an integrated supply chain vendor-buyer model with backorder price discount and effective investment to reduce ordering cost. Annadurai and Uthayakumar (2010) formulated a continuous review inventory model including defective items with controllable setup cost by discussing both normal distribution model and distribution-free model.…”

Section: Introductionmentioning

confidence: 99%

Integrated supply chain inventory model with quality improvement involving controllable lead time and backorder price discount

Jindal¹,

Solanki²

2016

10.5267/j.ijiec

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For the past four decades the integrated vendor and buyer supply chain inventory model has been an interesting topic, but quality improvement of defective items in the integrated inventory model with backorder price discount involving controllable lead time has been rarely discussed. The aim of this paper is to minimize the total related cost in the continuous review model by considering the order quantity, reorder point, lead time, process quality, backorder price discount and number of shipment as decision variables. Moreover, we assume that an investment function is used to improve the process quality. The lead time demand follows a normal distribution. In addition, the buyer offers backorder price discount to motivate the customers for possible backorders. There are some defective items in the arrival lot, so its treatment is also taken in account in this paper. We develop an iterative procedure for finding the optimal values of decision variables and numerical example is presented to illustrate the solution procedure. Additionally, sensitivity analysis with respect to major parameters is also carried out.

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An integrated vendor–buyer inventory model with backorder price discount and effective investment to reduce ordering cost

Cited by 77 publications

References 31 publications

A single-vendor and a single-buyer integrated inventory model with ordering cost reduction dependent on lead time

A single-vendor and a single-buyer integrated inventory model with ordering cost reduction dependent on lead time

Supply Chain Inventory Problem with Price Increased and Demand Rate Depends on Retail Price

Integrated supply chain inventory model with quality improvement involving controllable lead time and backorder price discount

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