| Article ID: | iaor20081604 |
| Country: | China |
| Volume: | 29 |
| Issue: | 2 |
| Start Page Number: | 140 |
| End Page Number: | 143 |
| Publication Date: | Feb 2006 |
| Journal: | Journal of Hefei University of Technology |
| Authors: | Liu Xinbao, Wu Yisheng, Jing Huaiming |
| Keywords: | supply & supply chains |
In this paper, the supply chain stream of funds has been classified into the internal stream of funds and the exterior stream of funds. The process of inventory cost flowing in the supply chain management is analyzed thoroughly. A mathematical model of the two-echelon inventory system taking account of price discounts is developed. A simple and effective approach is proposed for finding the optimal order number. The solution procedure is shown to be effective with a numerical example.