Journal article
Coordinated vs. independent inventory replenishment policies for a vendor and multiple buyers
International journal of production economics, v 35(1-3), pp 215-222
01 Jun 1994
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
Through a series of simulation experiments it is shown that classical lot sizing models do not adequately describe a situation where a single vendor produces and supplies a product to multiple industrial customers, buying in discrete lots. A common replenishment cycle-based, coordinated inventory control model is suggested, and it is shown that this approach is superior to independent optimization. If total relevant cost for any party increases as a result of coordination, it can be persuaded to participate in the process through a price discount or side payment scheme reflecting an equitable sharing of the savings in total system costs by all parties involved. Finally, since the shipments to the buyers are made simultaneously, they may be combined to realize further savings if the existing transportation cost economics permit.
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Details
- Title
- Coordinated vs. independent inventory replenishment policies for a vendor and multiple buyers
- Creators
- Avijit Banerjee - Drexel UniversityJonathan Burton - Drexel University
- Publication Details
- International journal of production economics, v 35(1-3), pp 215-222
- Publisher
- Elsevier Sequoia S.A
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Decision Sciences (and Management Information Systems)
- Web of Science ID
- WOS:A1994NZ26500028
- Scopus ID
- 2-s2.0-0028444423
- Other Identifier
- 991019173438204721
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InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Engineering, Industrial
- Engineering, Manufacturing
- Operations Research & Management Science