Lead time is one of the major limits that affect planning at every stage of the supply chain system. In this paper, we study a continuous review inventory model. This paper investigates the ordering cost reductions are dependent on lead time. This study addressed two-echelon supply chain problem consisting of a single vendor and a single buyer. The main contribution of this study is that the in...

Due to its complex nature, after-sales service support for systems such as aircraft engines is commonly outsourced to the vendor. A key input to contracting for such support is system reliability. When producttechnology is new, the vendor often knows more about reliability than the buyer, potentially leading to contractual inefficiencies. This paper examines the role of after-sales contracts as...

This paper examines the importance of compatibility on buyer behavior in the market for LAN equipment over the period 1996 through 1998. I provide evidence that switching costs drive firm establishments to purchase LAN equipment from incumbent vendors. Because LAN equipment is a networked good, incumbency affects vendor choice both when it occurs at the same establishment and/or at other establ...

The single-vendor single-buyer integrated production inventory system has been an object of study for a long time, but little is known about the effect of investing in reducing ordering cost on the integrated inventory models with backorder price discount and variable lead time. The purpose of this article is to investigate in the continuous review model with backorder price discount and variab...

This paper employs mathematical modeling and algebraic approach to derive the optimal manufacturing batch size and number of shipment for a vendor-buyer integrated economic production quantity (EPQ) model with scrap. Unlike the conventional method by using differential calculus to determine replenishment lot size and optimal number of shipments for such an integrated system, this paper proposes...

This paper develops a more general production-inventory model for a single-vendor–single-buyer integrated system. Unlike the hitherto existing production-inventory models for the vendor–buyer system, the present model neither requires the buyer’s unit holding cost greater than the vendor’s nor assumes the structure of shipment policy. Secondly, the model is extended to the situation with shorta...

This study develops an improved inventory model to help the enterprises to advance their profit increasing and cost reduction in a single vendor single-buyer environment with general demand curve, adjustable production rate, and imperfect reworking process under permissible delay in payments. For advancing practical use in a real world, we are concerned with the following strategy determining, ...