A single-vendor multiple-buyer inventory model with a multiple-shipment policy

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.

The joint economic lot sizing problem: Review and extensions

“…The results of the numerical examples show that the synchronized-cycles policy works better than an independent optimization and restricts buyers to adopt a common order cycle. 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 was presented in Siajadi et al (2006). The production is organized in such a way that the first shipment for each buyer is done in a sequence.…”

A single-manufacturer multi-buyer supply chain inventory model with controllable lead time and price-sensitive demand

“…Cheung and Lee [8] studied the problem of a supplier serving multiple retailers under different efforts. Siajadi et al [32] introduced a new methodology to obtain the joint economic lot size for single-vendor multi-retailer problem. The production was organized in such a way that shipments to buyers were done sequentially.…”

A Comparison of Different Shipment Policies in an Integrated Inventory System for Imperfect Quality Items with Inspection Errors

“…Their difference is that the size of the equal-sized shipments under Hill's [9] shipment policy in the end may not be the same as the last of the unequal-sized shipments. Other researchers also put insights into shipment policies for the integrated inventory system [11,12]. Anyway, all these researches only consider the integrated system where all items are totally perfect.…”