Optimal pricing and lot sizing vendor managed inventory

International Journal of Industrial Engineering Computations

关键词: Vendor Managed Inventory;    Supply Chain Management;    Optimal Pricing;    Economic Order Quantity;    Geometric Programming;    One-buyer One- supplier VMI;    Two-buyer Two-supplier VMI;   

DOI  :  

来源: DOAJ

【 摘 要 】

Vendor Managed Inventory (VMI) is one of the effective techniques for managing theinventory in supply chain. VMI models have been proven to reduce the cost of inventorycompared with traditional economic order quantity method under some conditions such asconstant demand and production expenditure. However, the modeling of the VMI problem hasnever been studied under some realistic assumptions such as price dependent demand. In thispaper, three problem formulations are proposed. In the first problem formulation, we study aVMI problem with one buyer and one supplier when demand is considered to be a function ofprice and price elasticity to demand, and production cost is also a function of demand. Theproposed model is formulated and solved in a form of geometric programming. For the secondand the third models, we consider VMI problem with two buyers and two suppliers assumingthat each buyer centre is relatively close to the other buyer centre. Each supplier has only oneproduct which is different from the product of the other supplier. Two suppliers cooperate incustomer relationship management and two buyers cooperate in supplier relationshipmanagement as well, so the suppliers send the orders of two buyers by one vehicle,simultaneously. For the third model, an additional assumption which is practically applicableand reasonable is considered. For all the proposed models, the optimal solution is comparedwith the traditional one. We demonstrate the implementation of our proposed models usingsome numerical examples.

【 授权许可】

Unknown