Stochastic integrated vendor–buyer model with unstable lead time and setup cost

Abstract

This paper presents a new vendor-buyer system where there are different objectives for both sides. The proposed method of this paper is different from the other previously published works since it considers different objectives for both sides. In this paper, the vendor's emphasis is on the crashing of the setup cost, which not only helps him compete in the market but also provides better services to his customers; and the buyer's aim is to reduce the lead time, which not only facilitates the buyer to fulfill the customers' demand on time but also enables him to earn a good reputation in the market or vice versa. In the light of the above stated facts, an integrated vendor-buyer stochastic inventory model is also developed. The propsed model considers two cases for demand during lead time: Case (i) Complete demand information, Case (ii) Partial demand information. The proposed model jointly optimizes the buyer's ordered quantity and lead time along with vendor's setup cost and the number of shipments. The results are demonstrated with the help of numerical examples.

Optimisation of the Single-Vendor Single-Buyer Supply Chain System under Fuzzy Demand Using Optimisation–Simulation Closed Loop Technique

“…Time-varying demand was modelled linearly subject to time, and JTC was minimised by substituting several equations into the objective function. Jaggi and Arneja [19] created a model for unstable lead time and setup cost with different vendor and buyer objectives. The vendor goal was to reduce setup costs, whereas the buyer goal was to reduce lead time.…”

An inventory model of two-warehouse system with variable demand dependent on instantaneous displayed stock and marketing decisions via hybrid RCGA

“…However, in both models, he did not consider shortages. During the past two decades, there have been extensive works dedicated to two-warehouse inventory models under different scenarios (Dave, 1988;-a, 1992Goswami & Chowdhuri , 1992;Bhunia & Maiti, 1994, 1995Benkherouf, 1997;Zhou, 1998Zhou, , 2003Kar et al, 2001;Zhou & Yang, 2003;Yang, 2004Yang, , 2006Pal et al, 2005;Das et al, 2007;Dye et al, 2007;Dey et al, 2008;Niu & Xie, 2008;Rong et al, 2008;Mondal et al, 2007;Jaggi & Arneja, 2011).…”