A vendor-buyer integrated production-inventory model with quantity discount and unequal sized shipments (Q2627355)

Summary: 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.