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A coordinated order-up-to inventory control policy for a single supplier and multiple buyers using electronic data interchange
Journal article   Peer reviewed

A coordinated order-up-to inventory control policy for a single supplier and multiple buyers using electronic data interchange

Avijit Banerjee and Snehamay Banerjee
International journal of production economics, v 35(1-3), pp 85-91
01 Jun 1994

Abstract

Algorithms Economic models Electronic data interchange Inventory control Operations research Studies
One way to reduce inventory related costs is to shorten the time lag in communication and shipment. Electronic data interchange (EDI) is a potential tool that can help achieve this. An analytical model based on a common cycle time approach is developed for inventory control under stochastic conditions for a vendor and multiple buyers dealing with a single product. The coordination implied by such an approach is facilitated by EDI. An iterative algorithm for calculating the operating parameters is presented. It is shown that implementation of the model can be economically desirable to all parties involved.

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Web of Science research areas
Engineering, Industrial
Engineering, Manufacturing
Operations Research & Management Science
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