Integrated inventory model for single vendor-single buyer with probabilistic demand (Q659452)
From MaRDI portal
scientific article
Language | Label | Description | Also known as |
---|---|---|---|
English | Integrated inventory model for single vendor-single buyer with probabilistic demand |
scientific article |
Statements
Integrated inventory model for single vendor-single buyer with probabilistic demand (English)
0 references
18 January 2012
0 references
Summary: We consider a single vendor-single buyer integrated inventory model with probabilistic demand and equal delivery lot size. The model contributes to the current literature by relaxing the deterministic demand assumption which has been used for almost all integrated inventory models. The objective is to minimise expected total costs incurred by the vendor and the buyer. We develop effective iterative procedures for finding the optimal solution. Numerical examples are used to illustrate the benefit of integration. A sensitivity analysis is performed to explore the effect of key parameters on delivery lot size, safety factor, production lot size factor and the expected total cost.
0 references
inventory modelling
0 references
probabilistic demand
0 references
safety stock
0 references
supply chain
0 references