An Integrated Inventory Model With Controllable Lead Time and Additional Transportation Cost

Abstract

In a manufacturing backlog structure, the craftsmen construct the products at a specific production scale, ships the placed orders to the purchaser in definite time periods and carries the extra inventory for the successive shipments. In actual world, an inventory supervisor has to carry a large number of primal matter, work in process items and polished goods in the backlog to survive in the aggressive merchandise. Numerous models have been proposed in literature for inventory management. The integrated models have been in light since they are concerned with the profit of both the parties- vendor and purchaser. The present work has been split into three chapters. In Chapter 1, the introduction of inventory models and the different approaches have been discussed. In Chapter 2, a research paper “A study of an integrated inventory with controllable lead time” Yang and Pan (2002) has been reviewed. In this paper, a joint inventory model for both vendor and purchaser is considered for reducing the joint total expected cost by reducing the lead time and thus obtaining the optimal solutions. In Chapter 3, an integrated inventory model with controllable lead time given by Yang and Pan (2002) has been extended by introducing the additional transportation cost. In this model, the transportation cost is to be charged to the vendor for trading the primal matter from the purchaser. A numerical illustration is also mentioned in the support of the model.