In this paper, a single-vendor single-buyer integrated inventory model for a deteriorating item with consignment stock policy is developed, assuming that the market demand is stock dependent and there is space limitation on the buyer’s storage capacity. Both equal and unequal shipments from the vendor to the buyer are considered. The effects of the buyer’s space capacity on the average cost, shipment size, and production batch are studied through numerical example. It is deduced that production rate is the key factor to determine whether to use equal or unequal shipment strategy. Sensitivity analysis is carried out to establish the robustness of the solutions of the models developed.
Keywords: Consignment stock, vendor managed inventory, space constraint, stock dependent demand, deterioration
@article{RO_2021__55_S1_S1425_0,
author = {Sen, Nabin and Bardhan, Sudarshan and Giri, Bibhas Chandra},
title = {Consignment stock policy in an integrated vendor-buyer model for deteriorating item with stock dependent demand under buyer{\textquoteright}s space limitation},
journal = {RAIRO. Operations Research},
pages = {S1425--S1446},
year = {2021},
publisher = {EDP-Sciences},
volume = {55},
doi = {10.1051/ro/2020123},
mrnumber = {4223201},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2020123/}
}
TY - JOUR AU - Sen, Nabin AU - Bardhan, Sudarshan AU - Giri, Bibhas Chandra TI - Consignment stock policy in an integrated vendor-buyer model for deteriorating item with stock dependent demand under buyer’s space limitation JO - RAIRO. Operations Research PY - 2021 SP - S1425 EP - S1446 VL - 55 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2020123/ DO - 10.1051/ro/2020123 LA - en ID - RO_2021__55_S1_S1425_0 ER -
%0 Journal Article %A Sen, Nabin %A Bardhan, Sudarshan %A Giri, Bibhas Chandra %T Consignment stock policy in an integrated vendor-buyer model for deteriorating item with stock dependent demand under buyer’s space limitation %J RAIRO. Operations Research %D 2021 %P S1425-S1446 %V 55 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2020123/ %R 10.1051/ro/2020123 %G en %F RO_2021__55_S1_S1425_0
Sen, Nabin; Bardhan, Sudarshan; Giri, Bibhas Chandra. Consignment stock policy in an integrated vendor-buyer model for deteriorating item with stock dependent demand under buyer’s space limitation. RAIRO. Operations Research, Tome 55 (2021), pp. S1425-S1446. doi: 10.1051/ro/2020123
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