Title: A vendor-managed inventory model for deteriorating products

Authors: Anyarin Sakrujiratham; Huynh Trung Luong

Addresses: Department of Industrial Systems Engineering, Asian Institute of Technology, Thailand ' Department of Industrial Systems Engineering, Asian Institute of Technology, Thailand

Abstract: This paper develops a vendor-managed inventory model for deteriorating products in a two-level supply chain which is comprised of one vendor and one retailer in the case when the time to deterioration of the product follows Weibull distribution. It is assumed that the market demand is price-sensitive and shortages are fully backlogged. The proposed inventory model helps to determine the replenishment cycle length and the optimal replenishment quantity to help minimise the total cost of the entire supply chain. Numerical experiments and sensitivity analyses are conducted to illustrate the applicability of the proposed model. Some future research directions are also discussed.

Keywords: vendor-managed inventory; VMI; inventory control; deteriorating products; supply chain management.

DOI: 10.1504/IJOR.2025.146112

International Journal of Operational Research, 2025 Vol.53 No.1, pp.58 - 79

Received: 11 Nov 2022
Accepted: 12 Nov 2022
Published online: 07 May 2025 *

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