Title: A vendor-buyer integrated production-inventory model with quantity discount and unequal sized shipments
Authors: B.C. Giri; B. Roy
Addresses: Department of Mathematics, Jadavpur University, Kolkata 700 032, West Bengal, India. ' Department of Mathematics, Jadavpur University, Kolkata 700 032, West Bengal, India
Abstract: This paper considers a single-vendor single-buyer integrated production-inventory model for a single product. The vendor offers a quantity discount to motivate the buyer to buy more quantities and he delivers the buyer's order quantity in a number of unequal sized shipments. The proposed model is formulated and the optimal decisions are obtained by minimising the average total cost of the integrated system. A numerical example is taken to illustrate the developed model.
Keywords: inventory modelling; vendor–buyer relationship; quantity discount; unequal shipments; production-inventory integration.
International Journal of Operational Research, 2013 Vol.16 No.1, pp.1 - 13
Published online: 01 Nov 2012 *Full-text access for editors Access for subscribers Purchase this article Comment on this article