In this study,we propose a joint economic lot-sizing model to include learning process along with errors in inspection and full backordering system.We aim to study pricing and inventory decisions in a two-level supply...In this study,we propose a joint economic lot-sizing model to include learning process along with errors in inspection and full backordering system.We aim to study pricing and inventory decisions in a two-level supply chain involving a single vendor and a single buyer in which the demand is sensitive to price and company’s advertisement efforts.The mathematical inventory model is developed analytically and solved using a proposed algorithm.The objective of the model is to maximise joint total profit by simultaneously determining optimal shipment size,number of deliveries,backorder quantity and product selling price.A numerical example is provided to show the application of the model and to investigate the impact of key parameter’s changes on model behaviour.By comparing the integrated/centralised model to the independent/decentralised model,we note that the integrated/centralised model provides better profit to the system,along with lower selling price and smaller amount of backorder.展开更多
文摘In this study,we propose a joint economic lot-sizing model to include learning process along with errors in inspection and full backordering system.We aim to study pricing and inventory decisions in a two-level supply chain involving a single vendor and a single buyer in which the demand is sensitive to price and company’s advertisement efforts.The mathematical inventory model is developed analytically and solved using a proposed algorithm.The objective of the model is to maximise joint total profit by simultaneously determining optimal shipment size,number of deliveries,backorder quantity and product selling price.A numerical example is provided to show the application of the model and to investigate the impact of key parameter’s changes on model behaviour.By comparing the integrated/centralised model to the independent/decentralised model,we note that the integrated/centralised model provides better profit to the system,along with lower selling price and smaller amount of backorder.
