Title: Single-vendor multi-buyer integrated inventory system for multi-item

Authors: R. Uthayakumar; M. Ganesh Kumar

Addresses: Department of Mathematics, The Gandhigram Rural Institute – Deemed University, Gandhigram, 624 302, Tamilnadu, India ' Department of Mathematics, The Gandhigram Rural Institute – Deemed University, Gandhigram, 624 302, Tamilnadu, India

Abstract: In this paper, a single-vendor multi-buyer supply chain system is considered in which several products. The demand of this supply chain for each product is a stochastic variable and it is assumed to follow a normal distribution. The lead time of receiving products from vendor to buyer is a variable which controllable by the adding extra cost. During the consumption period, the shortages are allowed and they are completely backlogged in the next replenishment. The production process is assumed to be imperfect, i.e., all the finished products need not consumable, so the buyer implements a screening process to separate the defective and non-defective items and the vendor pay warranty cost for each defective item to the buyer. We investigated the economic order quantity (EOQ), lead time and number of shipments such that total cost of the supply chain have been minimised. At last numerical illustration and sensitivity analysis are given.

Keywords: controllable lead time; defective items; economic order quantity; inspection; integrated model; multi-item; multi-buyer; process quality.

DOI: 10.1504/IJMOR.2019.099384

International Journal of Mathematics in Operational Research, 2019 Vol.14 No.3, pp.359 - 376

Received: 18 Aug 2016
Accepted: 13 Sep 2017
Published online: 01 May 2019 *

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