Joint Optimal Policy for Variable DeterioratingInventory System of Vendor-Buyer Orderingwith Trapezoidal Demand

摘要

A joint optimal policy for the vendor and the buyer is analyzed when units in inventory are subject to deterioration and demand is trapezoidal. It is shown numerically that the joint venture reduces the total joint cost significantly when compared with the independent decision of both the players. To entice the buyer to place orders of larger size, a permissible credit period is offered by the vendor to the buyer. A negotiation factor is incorporated to share the benefits of cost savings.