An Integrated Vendor-buyer Production Inventory System for Deteriorating Items with Time Varying Demand and Shortages for Buyer

摘要

In this paper, we formulate and solve a production-inventory problem for a vendor-buyer integrated system. We consider constant deterioration rate of items, increasing time-varying demand rate and shortages of items with complete backlogging. We provide a solution procedure and an algorithm for finding optimal scheduling of delivery plans and optimal total cost for both models with and without shortages. We compare the results of the models with and without shortage using a numerical example. We also provide the optimal solution for constant demand. Sensitivity analysis is carried out to study the effects of changes in the values of different parameters in the model.