Title: A single-vendor multi-buyer integrated model with stock- and price-dependent demand under consignment stock policy

Authors: P. Mandal; B.C. Giri

Addresses: Department of Mathematics, Jadavpur University, Kolkata-700032, India ' Department of Mathematics, Jadavpur University, Kolkata-700032, India

Abstract: In this paper, we consider a supply chain inventory system consisting of a single vendor and multiple buyers under multiple shipments and consignment stock policy between vendor and buyer. Each buyer's demand is assumed to be dependent on both the selling price and on-hand stock. Integrated model as well as individual models for vendor and buyers are developed allowing no shortage in inventory. Optimal results are obtained for a numerical example and managerial implications of the principal outcome are discussed. It is observed from the numerical study that the consignment stock policy performs better than the usual shipment policy when the holding cost of the item decreases in the downstream.

Keywords: inventory modelling; supply chain management; SCM; consignment stock policy; stock dependent demand; price dependent demand; vendor-buyer; deterioration; integrated modelling; multiple shipments.

DOI: 10.1504/IJSOM.2015.067478

International Journal of Services and Operations Management, 2015 Vol.20 No.2, pp.228 - 245

Published online: 17 Apr 2015 *

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