Article ID Journal Published Year Pages File Type
482961 European Journal of Operational Research 2006 15 Pages PDF
Abstract

This study deals with the lead time and ordering cost reduction problem in the single-vendor single-buyer integrated inventory model. We consider that buyer lead time can be shortened at an extra crashing cost which depends on the lead time length to be reduced and the ordering lot size. Additionally, buyer ordering cost can be reduced through further investment. Two models are presented in this study. The first model assumes that the ordering cost reduction has no relation to lead time crashing. The second model assumes that the lead time and ordering cost reduction are interacted. An iterative procedure is developed to find the optimal solution and numerical examples are presented to illustrate the results of the proposed models.

Related Topics
Physical Sciences and Engineering Computer Science Computer Science (General)
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