The Optimal Policy of Dominating Retailer under (Q, r) Policy and Two Different Shipment Modes

摘要

This paper analyzes the optimal order quantity and total cost of dominating retailer, who adopt (Q, r) policy to replenish inventory from a single supplier who meets the stochastic demand, under lot-splitting shipment and centralized shipment. The retailer has the ability of forcing the suppler to supply products by lot-splitting or centralized shipment. With fixed demand rate unit time and reorder point, it is proved that there exists only one optimal order quantity for above two shipment modes, respectively. By the comparison of the retailer's optimal total cost for above two shipment modes, we regard lot-splitting as the optimal policy of the dominating retailer and propose the retailer forces his supplier to adopt lot-splitting shipment.