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A JIT lot-splitting model for supply chain management: Enhancing buyer–supplier linkage
Journal article   Peer reviewed

A JIT lot-splitting model for supply chain management: Enhancing buyer–supplier linkage

Seung-Lae Kim and Daesung Ha
International journal of production economics, v 86(1), pp 1-10
11 Oct 2003

Abstract

Buyer–supplier linkage Integrated inventory model Just-in-time manufacturing Lot-splitting strategy
This study develops a buyer–supplier coordination model to facilitate frequent deliveries in small lot sizes in a manufacturing supply chain. The proposed model, based on the integrated total relevant costs of both buyer and supplier, determines optimal order quantity, the number of deliveries/setups, and shipping quantity over a finite planning horizon in a relatively simple JIT single buyer single supplier scenario. Under deterministic conditions for a single product, we show that the optimal delivery policy adopted by both buyer and supplier in a cooperative manner can be economically beneficial to both parties. It is shown that the optimal delivery size can be unique, regardless of the order quantity and the number of deliveries. Numerical results are also presented.

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156 citations in Scopus

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Collaboration types
Domestic collaboration
Web of Science research areas
Engineering, Industrial
Engineering, Manufacturing
Operations Research & Management Science
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