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.

DOI: 10.1504/IJOR.2013.050537

International Journal of Operational Research, 2013 Vol.16 No.1, pp.1 - 13

Published online: 29 Jul 2014 *

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