Dynamic terminology for supplier-retailer collaboration metrics in inventory model
Atma Nand, Waqar Younus · International Journal of Mathematical Modelling and Numerical Optimisation · 2024
The proposed models consider factors like product deterioration, shortage, backordering, and various costs associated with inventory management. The research compares the outcomes of the decentralised system, where the retailer determines replenishment cycles, with the centralised system, where the supplier dictates the cycles. Different algorithms are employed to find the optimal schedule for both retailer and supplier. The study also formulates optimality conditions for minimising the total cost functions for both retailer and supplier. The retailer uses the Hessian matrix as a tool to make sure that the function describing the total costs is positive definite. The research concludes with an analysis of the suggested optimal total costs for the retailer under different replenishment cycle scenarios.