Cooperative inventory model for vendor-buyer system with quantity and freight discounts Online publication date: Thu, 10-Nov-2016
by Wakhid Ahmad Jauhari; Kartika Winingsih
International Journal of Services and Operations Management (IJSOM), Vol. 25, No. 4, 2016
Abstract: In this paper, a single-vendor single-buyer integrated inventory model with stochastic demand and quantity and freight discounts is developed. Here, we consider a situation where vendor and shipper offer discounts to buyer. We propose four integrated inventory models by employing four discount schedules that is dual all-unit discount, dual incremental discount and two mixed discounts. An iterative procedure is proposed to find shipment size, safety factor, production batch and discount on proposed models. A numerical example is provided to show the benefit of using the models. The behaviour of the models affected by the changes of demand uncertainty, discounts and number of discount levels are also analysed.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Services and Operations Management (IJSOM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com