Inventory Policy Decision under an Integrated Vendor-buyer Cooperative Inventory Model
- 10.2991/emim-15.2015.187How to use a DOI?
- Inventory model; Imperfect quality; Multiple screening; Inspection errors; Shortage backordering
This paper mainly studies the optimal order size, the maximum shortage level and the optimal delivery times to maximize the total joint annual profits of inventory. To end this, we establish an inventory model which consists of a vendor and a buyer. For more close to the actual, we consider the several realities of situations, such as imperfect quality, multiple screening, inspection errors and shortage backordering. We then use the optimal theory to get the optimal decision of order size, the maximum shortage level and the optimal delivery times. Based on it, we also find two useful managerial insights. First, the vendor and the buyer do not need pay attention on changing order size and maximum shortage level when defective probabilities changes. Second, we propose a feasible method to find the specific delivery times. Finally, we further illustrate our finding by using numerical experiment.
- © 2015, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Peng Zhang AU - Jie Xu PY - 2015/04 DA - 2015/04 TI - Inventory Policy Decision under an Integrated Vendor-buyer Cooperative Inventory Model BT - Proceedings of the 2015 International Conference on Education, Management, Information and Medicine PB - Atlantis Press SP - 961 EP - 966 SN - 2352-5428 UR - https://doi.org/10.2991/emim-15.2015.187 DO - 10.2991/emim-15.2015.187 ID - Zhang2015/04 ER -