| Article ID: | iaor2009292 |
| Country: | Netherlands |
| Volume: | 54 |
| Issue: | 1 |
| Start Page Number: | 128 |
| End Page Number: | 139 |
| Publication Date: | Feb 2008 |
| Journal: | Computers & Industrial Engineering |
| Authors: | Wee Hui-Ming, Yang P.C., Hsu P.H. |
| Keywords: | inventory |
Due to rapid technological innovation, shortening product life cycle and severe competition, product demand rate will decrease. In this study, we develop a collaborative vendor–buyer inventory system with exponentially decreasing market, finite horizon and constant replenishment interval. The result of this study shows an impressive cost reduction as a result of collaboration. The result is even more significant for products with decreasing demand.