Abstract
This paper presents a new methodology to obtain the joint economic lot size in the case where multiple buyers are demanding one type of item from a single vendor. The shipment policy is found and a new model is proposed to minimise the joint total relevant cost (JTRC) for both vendor and buyer(s). Considering the two-buyer and the more-than-two-buyer cases, an analytical solution and numerical solution are obtained. A significant savings in joint total relevant cost is achieved when the total demand rate is close to the production rate. A sensitivity analysis is also conducted to test the robustness of the new model .
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
References
Banerjee A (1986) A joint economic-lot-size model for purchaser and vendor. Decis Sci 17:292–311
Hall RW (1995) On the integration of production and distribution economic order and production quantity implications. Transp Res 30(5):387–403
Li SX, Huang Z, Ashley A (1996) Improving buyer-seller system cooperation through inventory control. Int J Prod Econ 43:37–46
Miller PA, Kelle P (1998) Quantitative support for buyer-supplier negotiation in just-in-time purchasing. Int J Purchas Mater Manage 34:25–30
Goyal SK (1988), A joint economic-lot-size model for purchaser and vendor: a comment. Decis Sci 19:236–241
Lu L (1995) A one-vendor multi-buyer integrated inventory model. Eur J Oper Res 81:312–323
Hahm J, Yano CA (1992) The economic lot and delivery scheduling problem: the single item case. Int J Prod Econ 28:235–252
Aderohunmu R, Mobolurin A, Bryson N (1995) Joint vendor-buyer policy in JIT manufacturing. J Oper Res Soc 46:375–385
Banerjee A, Kim SL (1995) An integrated JIT inventory model. Int J Oper Prod Manage 15(9):237–244
Khan LR, Sarker RA (1999) An optimal batch size for a production system operating under periodic delivery policy. Comput Ind Eng 37:711–730
Khan LR, Sarker RA (2002) An optimal batch size for a JIT manufacturing system. Comput Ind Eng 42:127–136
Lee HL, Tang CS (1997) Modelling the costs and benefits of delayed product differentiation. Manage Sci 43(1):40–53
Joglekar P (1988) Comments on a quantity discount pricing model to increase vendor profit. Manage Sci 34(11):1391–1398
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Siajadi, H., Ibrahim, R. & Lochert, P. A single-vendor multiple-buyer inventory model with a multiple-shipment policy. Int J Adv Manuf Technol 27, 1030–1037 (2006). https://doi.org/10.1007/s00170-004-2267-4
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00170-004-2267-4