Proceedings of the 2015 International Conference on Education, Management, Information and Medicine

Inventory Policy Decision under an Integrated Vendor-buyer Cooperative Inventory Model

Authors
Peng Zhang, Jie Xu
Corresponding Author
Peng Zhang
Available Online April 2015.
DOI
10.2991/emim-15.2015.187How to use a DOI?
Keywords
Inventory model; Imperfect quality; Multiple screening; Inspection errors; Shortage backordering
Abstract

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.

Copyright
© 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/).

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Volume Title
Proceedings of the 2015 International Conference on Education, Management, Information and Medicine
Series
Advances in Economics, Business and Management Research
Publication Date
April 2015
ISBN
10.2991/emim-15.2015.187
ISSN
2352-5428
DOI
10.2991/emim-15.2015.187How to use a DOI?
Copyright
© 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  -