vendor buyer supply chain management models with and without backorder an inspection at vendor site

Abstract

Every business has to maintain some sort of inventory and henceforth inventory newlinemanagement becomes one of the important activities. The major activities of newlineinventory management are the flow of goods and the flow of information. The newlinegoods move down-stream from the supplier to the manufacturer, the manufacturer newlineto the buyer (passing through intermediaries like wholesaler/stockiest/dealer) and newlinethe buyer to the consumer. Information, initially generated from the customer in the newlineform of demand, flows up-stream to the buyer (dealer), from the buyer to the newlinemanufacturer and finally from the manufacturer to suppliers of raw materials. newlineIndustries that are involved in manufacturing of items need to cut the cost of newlinetheir operations because of tough competition in the market. The supply chain newlinemanagement is not just storing goods in an inventory, but it also deals with newlinescheduling production of items, location of inventories, when to place an order, newlinewhat is the quantity of items to order, how much quantity of items to be shipped, newlinefrequency of shipments and many more activities with an objective to minimize the newlinetotal expected cost of these operations. Research work done in supply chain newlinemanagement was aimed for reducing the total expected cost of inventory newlinemanagement and guided industries to plan their activities accordingly. During 1960- newline70, the concepts and principles like JIT (Just in Time), was developed in Japan and newlineparticularly used by Toyota. This concept played an important role in effective newlinesupply chain management.P a g e viii newline(Goyal, 1977) had initiated research work on integrated inventory newlinemanagement by giving An integrated inventory model for a single supplier single newlinecustomer problem . The research work was followed by (Banerjee, 1986) A joint newlineeconomicand#8208;lotand#8208;size model for purchaser and vendor who had given Joint EconomicLot-Size (JELS). (Lu, 1995) discussed one vendor multi-buyer inventory newlinemanagement. (Salameh and Jaber, 2000) had discussed inventory management with newlineimperfect production quality.