A discussion on economic ordering policy of deteriorated item for vendor and buyer

A discussion on economic ordering policy of deteriorated item for vendor and buyer

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Article ID: iaor20071604
Country: United Kingdom
Volume: 17
Issue: 8
Start Page Number: 792
End Page Number: 795
Publication Date: Dec 2006
Journal: Production Planning and Control
Authors: , ,
Keywords: deteriorating items
Abstract:

Yang and Wee in 2000 proposed an ordering policy for a vendor–buyer integrated model. This note examines the cost component of Yang and Wee's model and gives some insight on the derivation of the holding cost function. We have discovered that their model violates the positive holding cost characteristic and the total quantity-equality characteristic. A proposal to eradicate the problem is given.

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