Article ID: | iaor20031757 |
Country: | Netherlands |
Volume: | 143 |
Issue: | 3 |
Start Page Number: | 570 |
End Page Number: | 581 |
Publication Date: | Dec 2002 |
Journal: | European Journal of Operational Research |
Authors: | Wee H.M., Yang P.C. |
Keywords: | programming: mathematical |
This study develops a single-vendor, multi-buyers production–inventory policy for a deteriorating item with a constant production and demand rate. A mathematical model incorporating the costs of both the vendor and the buyers is developed. It can be shown that the integrated policy results in an impressive cost reduction when it is compared with the independent decisions made by the vendor and the buyers.