Title: Integrated vendor-buyer inventory model in a supply chain with variable lead time and setup cost reduction

Authors: R. Uthayakumar; S. Hemapriya

Addresses: Department of Mathematics, The Gandhigram Rural Institute – Deemed University, Gandhigram – 624302, Tamilnadu, India ' Department of Mathematics, The Gandhigram Rural Institute – Deemed University, Gandhigram – 624302, Tamilnadu, India

Abstract: The single vendor single-buyer integrated production inventory system has been an object of study for a long time but little is known about the effect of investing in reducing setup cost on the integrated inventory models with variable lead time and production lot size dependent lead time and transportation time. A mathematical model is derived to investigate the effects of setup cost reduction on the integrated inventory system by reducing the total cost system. A numerical example is included to illustrate the results of the model. Finally, graphical representation is presented to illustrate the model. The solution procedure is furnished to determine the optimal solution and the sensitivity analysis has been carried out to illustrate the behaviours of the proposed model.

Keywords: integrated inventory model; supply chain management; setup cost reduction.

DOI: 10.1504/IJPMB.2019.100965

International Journal of Process Management and Benchmarking, 2019 Vol.9 No.3, pp.323 - 350

Received: 21 Dec 2016
Accepted: 01 Apr 2017
Published online: 22 Jul 2019 *

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