How accurate is the integrated vendor-buyer continuous model?

被引:10
|
作者
David, Israel [1 ]
Eben-Chaime, Moshe [1 ]
机构
[1] Ben Gurion Univ Negev, Dept Ind Engn & Management, IL-84105 Beer Sheva, Israel
关键词
production-inventory; vendor-buyer models; supply chains; continuous approximation;
D O I
10.1016/j.ijpe.2008.03.010
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
The classic single-item, deterministic-demand, integrated venclor-buyer model is revisited. The decision problem may also be viewed as that of one centralized firm, dealing with a two-level EOQ-Iike supply chain with finite production rates. It is sought to optimize the production lot-size and the integral number of its shipments, in equal batches, from the vendor to the buyer. While the problem calls for discrete optimization techniques, we introduced a continuous model where one can take derivatives with respect to both variables. In this short paper, we establish a 98.5% lower bound on the accuracy of this continuous model. (C) 2008 Elsevier B.V. All rights reserved.
引用
收藏
页码:805 / 810
页数:6
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