This paper deals with an integrated vendor-buyer supply chain model. Two models are constructed based on the probability distribution of the lead time demand. The lead time demand follows a normal distribution in the first model. In the second model, we consider the distribution free approach for the lead time demand. For the second model, only mean and standard deviation are known. The aim of our model is to reduce the total system cost by considering the setup cost reduction of the vendor. Finally, some numerical examples are presented to illustrate the models.
Bibliographical noteFunding Information:
The authors thank the reviewers for their encouragement and constructive comments in revising the paper. The authors are grateful to the University Grants Commission (Minor Research Project, File No. 41-1433/2012(SR)), India for their financial assistance and Vidyasagar University, India for their infrastructural assistance to carry out the research. The first author expresses his heartfelt gratitude to his parents, wife, and son. This research comes to reality with their inspiration. The second author wishes to express his gratitude to his parents.
All Science Journal Classification (ASJC) codes
- Computational Mathematics
- Applied Mathematics