Title: A vendor-buyer integrated inventory system with vendor's capacity constraint

Authors: Bibhas C. Giri; Rupak Bhattacharjee; Ayan Chakraborty

Addresses: Department of Mathematics, Jadavpur University, Kolkata, India ' Department of Mathematics, JIS College of Engineering, Kalyani, India ' Department of Mathematics, Jadavpur University, Kolkata, India

Abstract: This article considers a joint economic lot sizing problem (JELP) of a single-vendor single-buyer inventory system in which the vendor is capacity constrained. The proposed model is formulated assuming that whenever the vendor's on-hand inventory level reaches the maximum attainable capacity, (s)he follows a modified consignment stock policy until the production lot is completed. A solution algorithm is provided and a numerical example is taken to illustrate the developed model. Sensitivity analysis is performed to examine the impact of key model-parameters on the optimal solution.

Keywords: vendor-buyer inventory; integrated inventory; joint ELP; economic lot sizing problem; JELP; capacity constraints; consignment stock; inventory modelling.

DOI: 10.1504/IJLSM.2015.069728

International Journal of Logistics Systems and Management, 2015 Vol.21 No.3, pp.284 - 303

Received: 04 Dec 2013
Accepted: 21 Mar 2014
Published online: 30 May 2015 *

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