Abstract
This study develops an optimal pricing and replenishment policy of an integrated vendor-buyer inventory system with a finite vendor's replenishment rate. A quantity discount pricing strategy is derived to entice the buyer to order larger lot sizes in order to achieve the positive result of collaboration. A negotiation factor is incorporated to balance the cost saving between the vendor and the buyer. By revising Goyal's model, a significant cost reduction inventory model is derived. A numerical example and sensitivity analysis are carried out to illustrate the theory.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Computer Integrated Manufacturing
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
