Inventory policy decision under an integrated vendor-buyer cooperative inventory model

摘要

This paper mainly studies the optimal order size, the maximum shortage level and the optimal delivery times to maximize the total joint annual profits of inventory. To end this, we establish an inventory model which consists of a vendor and a buyer. For more close to the actual, we consider the several realities of situations, such as imperfect quality, multiple screening, inspection errors and shortage backordering. We then use the optimal theory to get the optimal decision of order size, the maximum shortage level and the optimal delivery times. Based on it, we also find two useful managerial insights. First, the vendor and the buyer do not need pay attention on changing order size and maximum shortage level when defective probabilities changes. Second, we propose a feasible method to find the specific delivery times. Finally, we further illustrate our finding by using numerical experiment.