Article ID: | iaor20084275 |
Country: | Netherlands |
Volume: | 178 |
Issue: | 1 |
Start Page Number: | 92 |
End Page Number: | 111 |
Publication Date: | Apr 2007 |
Journal: | European Journal of Operational Research |
Authors: | Lin Chinho, Lin Yihsu |
Keywords: | deteriorating items |
A cooperative inventory policy between supplier and buyer is proposed. Unlike other studies, we consider the case of deteriorating items and permit the completed back-order in the problem. We solve the problem without the condition of equal replenishments periods during a specified planning horizon and present a procedure to find the optimal solution. A case is presented to demonstrate the application of the proposed approach. The sensitivity analysis for a cooperation policy between supplier and buyer also are explored.