Inventory replenishment model: lot sizing versus just-in-time delivery

Inventory replenishment model: lot sizing versus just-in-time delivery

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Article ID: iaor2005445
Country: Netherlands
Volume: 32
Issue: 6
Start Page Number: 581
End Page Number: 590
Publication Date: Nov 2004
Journal: Operations Research Letters
Authors:
Abstract:

Motivated by a practical industrial problem where a manufacturer stipulates a minimum order from each buyer but where a local dealer promises the buyer a just-in-time delivery with a slightly higher unit cost, this paper uses a dynamic lot-sizing model with a stepwise cargo cost function and a minimum order amount constraint to help the buyer select the supplier with minimum total cost.

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