Article history: Received June 10, 2013 Received in revised format 25 August 2013 Accepted September 2 2013 Available online September 8 2013 This paper studies the issue of channel coordination for a decentralized supply chain consisting of one vendor and one buyer in multi-period setting. Considering the allowance of the backorder at the buyer side distinguishes this work in the literature. T...

As the requirement of task is dynamical, the usage of equipment will change with time and it will result in the fluctuating demand for spare parts all over the time. In order to improve equipment performance, the users need to forecast equipment failure frequency and demand for spare parts within the task period. Demand in a moment of task period is the result of cumulative effect of the failur...

Previous ordering cost reduction vendor–buyer inventory models with backorder price discount usually assumed that the buyer must pay to the vendor for the ordered items as soon as the items are received, the received quantity is same as the ordered quantity and the transportation cost is independent of the shipment lot-size. In practice, however, the vendor is willing to offer the buyer a certa...

This paper investigates the impact of setup cost reduction on an inventory policy for a continuous review mixture inventory model involving controllable backorder rate and variable lead time with a service level constraint, in which the order quantity, setup cost, and lead time are decision variables. Our objective is to develop an algorithm to determine the optimal order quantity, setup cost, ...