Title: An EOQ model for a deteriorating item under permissible delay in a vendor managed inventory system

Authors: Ali Akbar Shaikh; Leopoldo Eduardo Cárdenas-Barrón; Asoke Kumar Bhunia

Addresses: Department of Mathematics, The University of Burdwan, Burdwan 713104, India ' Department of Industrial and Systems Engineering, School of Engineering and Sciences, Tecnológico de Monterrey, E. Garza Sada 2501 Sur, Monterrey, C.P. 64849, Nuevo León, México ' Department of Mathematics, The University of Burdwan, Burdwan 713104, India

Abstract: The vendor managed inventory (VMI) plays a significant role in inventory as well as supply chain management. In a VMI system, the supplier is responsible for the decisions related to the timing and replenishment quantity. This paper develops an inventory model for a deteriorating item with permissible delay under a vendor managed inventory system. Shortages are allowed and these are partially backlogged waiting up to arrival of the next lot. Demand is dependent on selling price as well as frequency of advertisement. Also, a numerical example is solved and a sensitivity analysis is included. It is found that the implementation of the VMI is more beneficial because is less costly compared with an inventory model without VMI.

Keywords: VMI policy; deterioration; permissible delay in payment; advertisement and price dependent demand.

DOI: 10.1504/IJAMS.2022.10050101

International Journal of Applied Management Science, 2022 Vol.14 No.3, pp.183 - 204

Received: 29 May 2019
Accepted: 02 Oct 2019

Published online: 31 Aug 2022 *

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