The joint economic lot size problem: A review

This article reviews lot-size models which focus on coordinated inventory replenishment decisions between buyer and vendor and their impact on the performance of the supply chain. These so-called joint economic lot size (JELS) models determine order, production and shipment quantities from the perspective of the supply chain with the objective of minimizing total system costs. This paper first describes the problem studied, introduces the methodology of the review and presents a descriptive analysis of the selected papers. Subsequently, papers are categorized and analyzed with respect to their contribution to the coordination of different echelons in the supply chain. Finally, the review highlights gaps in the existing literature and suggests interesting areas for future research.