A cooperative inventory policy with deteriorating items for a two-echelon model

A cooperative inventory policy with deteriorating items for a two-echelon model

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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: ,
Keywords: deteriorating items
Abstract:

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.

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