A vendor-buyer integrated inventory system with vendor's capacity constraint
by Bibhas C. Giri; Rupak Bhattacharjee; Ayan Chakraborty
International Journal of Logistics Systems and Management (IJLSM), Vol. 21, No. 3, 2015

Abstract: This article considers a joint economic lot sizing problem (JELP) of a single-vendor single-buyer inventory system in which the vendor is capacity constrained. The proposed model is formulated assuming that whenever the vendor's on-hand inventory level reaches the maximum attainable capacity, (s)he follows a modified consignment stock policy until the production lot is completed. A solution algorithm is provided and a numerical example is taken to illustrate the developed model. Sensitivity analysis is performed to examine the impact of key model-parameters on the optimal solution.

Online publication date: Sat, 30-May-2015

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