Research on Optimal Policy of Single-Period Inventory Management with Two Suppliers

Research on Optimal Policy of Single-Period Inventory Management with Two Suppliers

We study a single-period inventory control problem with two independent suppliers. With the first supplier, the buyer incurs a high variable cost but negligible fixed cost; with the second supplier, the buyer incurs a lower variable cost but a positive fixed cost. At the same time, the ordering quan...

Full description

Bibliographic Details
Main Authors: Baimei Yang, Lihui Sui, Peipei Zhu
Format: Article
Language:English
Published: Hindawi Limited 2014-01-01
Series:The Scientific World Journal
Online Access:http://dx.doi.org/10.1155/2014/417319
id doaj-4a331aff655f4fdebdc1e9ac018fef12
record_format Article
spelling doaj-4a331aff655f4fdebdc1e9ac018fef122020-11-24T21:44:32ZengHindawi LimitedThe Scientific World Journal2356-61401537-744X2014-01-01201410.1155/2014/417319417319Research on Optimal Policy of Single-Period Inventory Management with Two SuppliersBaimei Yang0Lihui Sui1Peipei Zhu2School of Business, Shanghai Dianji University, Shanghai 201306, ChinaSchool of Business, Shanghai Dianji University, Shanghai 201306, ChinaSchool of Business, Shanghai Dianji University, Shanghai 201306, ChinaWe study a single-period inventory control problem with two independent suppliers. With the first supplier, the buyer incurs a high variable cost but negligible fixed cost; with the second supplier, the buyer incurs a lower variable cost but a positive fixed cost. At the same time, the ordering quantity is limited. We develop the optimal inventory control policy when the holding and shortage cost function is convex. We also conduct some numerical experiments to explore the effects of the fixed setup cost K and the ordering capacity Q on the optimal control policy.http://dx.doi.org/10.1155/2014/417319
collection DOAJ
language English
format Article
sources DOAJ
author Baimei Yang
Lihui Sui
Peipei Zhu
spellingShingle Baimei Yang
Lihui Sui
Peipei Zhu
Research on Optimal Policy of Single-Period Inventory Management with Two Suppliers
The Scientific World Journal
author_facet Baimei Yang
Lihui Sui
Peipei Zhu
author_sort Baimei Yang
title Research on Optimal Policy of Single-Period Inventory Management with Two Suppliers
title_short Research on Optimal Policy of Single-Period Inventory Management with Two Suppliers
title_full Research on Optimal Policy of Single-Period Inventory Management with Two Suppliers
title_fullStr Research on Optimal Policy of Single-Period Inventory Management with Two Suppliers
title_full_unstemmed Research on Optimal Policy of Single-Period Inventory Management with Two Suppliers
title_sort research on optimal policy of single-period inventory management with two suppliers
publisher Hindawi Limited
series The Scientific World Journal
issn 2356-6140
1537-744X
publishDate 2014-01-01
description We study a single-period inventory control problem with two independent suppliers. With the first supplier, the buyer incurs a high variable cost but negligible fixed cost; with the second supplier, the buyer incurs a lower variable cost but a positive fixed cost. At the same time, the ordering quantity is limited. We develop the optimal inventory control policy when the holding and shortage cost function is convex. We also conduct some numerical experiments to explore the effects of the fixed setup cost K and the ordering capacity Q on the optimal control policy.
url http://dx.doi.org/10.1155/2014/417319
work_keys_str_mv AT baimeiyang researchonoptimalpolicyofsingleperiodinventorymanagementwithtwosuppliers
AT lihuisui researchonoptimalpolicyofsingleperiodinventorymanagementwithtwosuppliers
AT peipeizhu researchonoptimalpolicyofsingleperiodinventorymanagementwithtwosuppliers
_version_ 1725909570812903424

Similar Items