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: | Wee H.M., Yang P.C., Jong J.F. |
Keywords: | deteriorating items |
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.