This study presents a new integrated production–inventory policy under a finite planning horizon and a linear trend in demand. We assume that the vendor makes a single product and supplies it to a buyer with a non-periodic and just-in-time (JIT) replenishment policy in a supply chain environment. The objective is to minimize the joint total costs incurred by the vendor and the buyer. In this st...

In this paper, a single-vendor, single-buyer supply chain for fixed lifetime product is considered. We propose models to analyze the benefit of coordinating supply chain through quantity discount strategy. Under the proposed strategy, the buyer is requested to alter his current order size such that the vendor can benefit from lower costs, and quantity discount is offered by the vendor to compen...

We develop a model to determine an integrated vendor-buyer inventory policy for items with imperfect quality and planned backorders. The production process is imperfect and produces a certain number of defective items with a known probability density function. The vendor delivers the items to the buyer in small lots of equally sized shipments. Upon receipt of the items, the buyer will conduct a...

The concept of vendor managed inventory (VMI) radically changes a traditional inventory management. With regard to the traditional concept, customers make a replenishment decision. However, the VMI concept is that the responsibility for replenishment process is allocated from the customer to the suppliers. As it requires both trading partner sharing more information; therefore, this contributes...