The economic lot size of the integrated vendor–buyer inventory system derived without derivatives

The economic lot size of the integrated vendor–buyer inventory system derived without derivatives

0.00 Avg rating0 Votes
Article ID: iaor20041965
Country: United Kingdom
Volume: 23
Issue: 3
Start Page Number: 163
End Page Number: 169
Publication Date: May 2002
Journal: Optimal Control Applications & Methods
Authors: ,
Keywords: control processes
Abstract:

In previous modellings of the vendor–buyer system, the buyer's economic order quantity and the vendor's optimal number of deliveries are derived by setting the first derivatives to zero and solving the simultaneous equations. The Hessian matrix of second derivatives is used to prove the convexity of the objective function. This procedure can be difficult for students who lack the background of differential calculus. This study develops algebraically the optimal policy of the integrated vendor–buyer inventory system without using differential calculus. A significant cost reduction is also achieved when Goyal's model is modified.

Reviews

Required fields are marked *. Your email address will not be published.