An integrated inventory model for a single vendor and single buyer with order-processing cost reduction and process mean

Abstract

Co-ordination in a supply chain is an effective way to improve channel performance. This paper considers a supply chain in which a vendor supplies a product to a buyer. In this paper, we develop a model that integrates the single vendor single buyer problem with order-processing cost reduction and process mean. A solution procedure is provided to determine the optimal order policy. Finally, a numerical example is presented to illustrate the solution procedure.

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