IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v135y2012i2p671-686.html
   My bibliography  Save this article

The joint economic lot size problem: A review

Author

Listed:
  • Glock, Christoph H.

Abstract

This article reviews lot-size models which focus on coordinated inventory replenishment decisions between buyer and vendor and their impact on the performance of the supply chain. These so-called joint economic lot size (JELS) models determine order, production and shipment quantities from the perspective of the supply chain with the objective of minimizing total system costs. This paper first describes the problem studied, introduces the methodology of the review and presents a descriptive analysis of the selected papers. Subsequently, papers are categorized and analyzed with respect to their contribution to the coordination of different echelons in the supply chain. Finally, the review highlights gaps in the existing literature and suggests interesting areas for future research.

Suggested Citation

  • Glock, Christoph H., 2012. "The joint economic lot size problem: A review," International Journal of Production Economics, Elsevier, vol. 135(2), pages 671-686.
  • Handle: RePEc:eee:proeco:v:135:y:2012:i:2:p:671-686
    DOI: 10.1016/j.ijpe.2011.10.026
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527311004567
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijpe.2011.10.026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Glock, C. H., 2009. "A Comment: "Integrated single vendor single buyer model with stochastic demand and variable lead time"," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57828, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Z X Chen & B R Sarker, 2010. "Multi-vendor integrated procurement-production system under shared transportation and just-in-time delivery system," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(11), pages 1654-1666, November.
    3. Affisco, John F. & Javad Paknejad, M. & Nasri, Farrokh, 2002. "Quality improvement and setup reduction in the joint economic lot size model," European Journal of Operational Research, Elsevier, vol. 142(3), pages 497-508, November.
    4. Huang, Chao-Kuei, 2004. "An optimal policy for a single-vendor single-buyer integrated production-inventory problem with process unreliability consideration," International Journal of Production Economics, Elsevier, vol. 91(1), pages 91-98, September.
    5. Chang, Hung-Chi & Ouyang, Liang-Yuh & Wu, Kun-Shan & Ho, Chia-Huei, 2006. "Integrated vendor-buyer cooperative inventory models with controllable lead time and ordering cost reduction," European Journal of Operational Research, Elsevier, vol. 170(2), pages 481-495, April.
    6. Sajadieh, Mohsen S. & Thorstenson, Anders & Jokar, Mohammad R. Akbari, 2010. "An integrated vendor-buyer model with stock-dependent demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 963-974, November.
    7. Hoque, M. A. & Goyal, S. K., 2000. "An optimal policy for a single-vendor single-buyer integrated production-inventory system with capacity constraint of the transport equipment," International Journal of Production Economics, Elsevier, vol. 65(3), pages 305-315, May.
    8. Kim, Seung-Lae & Ha, Daesung, 2003. "A JIT lot-splitting model for supply chain management: Enhancing buyer-supplier linkage," International Journal of Production Economics, Elsevier, vol. 86(1), pages 1-10, October.
    9. Chen, Tsung-Hui & Chen, Jen-Ming, 2005. "Optimizing supply chain collaboration based on joint replenishment and channel coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(4), pages 261-285, July.
    10. Francis Leung, Kit Nam, 2010. "A generalized algebraic model for optimizing inventory decisions in a centralized or decentralized multi-stage multi-firm supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 896-912, November.
    11. Ouyang, Liang-Yuh & Wu, Kun-Shan & Ho, Chia-Huei, 2007. "An integrated vendor-buyer inventory model with quality improvement and lead time reduction," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 349-358, July.
    12. Ertogral, K. & Darwish, M. & Ben-Daya, M., 2007. "Production and shipment lot sizing in a vendor-buyer supply chain with transportation cost," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1592-1606, February.
    13. Chan, Chi Kin & Kingsman, Brian G., 2007. "Coordination in a single-vendor multi-buyer supply chain by synchronizing delivery and production cycles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(2), pages 90-111, March.
    14. Bylka, Stanislaw, 1999. "A dynamic model for the single-vendor, multi-buyer problem," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 297-304, March.
    15. Kelle, Peter & Transchel, Sandra & Minner, Stefan, 2009. "Buyer-supplier cooperation and negotiation support with random yield consideration," International Journal of Production Economics, Elsevier, vol. 118(1), pages 152-159, March.
    16. Abdul-Jalbar, Beatriz & Gutierrez, Jose M. & Sicilia, Joaquin, 2007. "An integrated inventory model for the single-vendor two-buyer problem," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 246-258, July.
    17. Kim, Taebok & Hong, Yushin & Chang, Soo Young, 2006. "Joint economic procurement--production-delivery policy for multiple items in a single-manufacturer, multiple-retailer system," International Journal of Production Economics, Elsevier, vol. 103(1), pages 199-208, September.
    18. Wee, H. M. & Yang, P. C., 2004. "The optimal and heuristic solutions of a distribution network," European Journal of Operational Research, Elsevier, vol. 158(3), pages 626-632, November.
    19. Seliaman, M.E. & Ahmad, Ab Rahman, 2009. "A generalized algebraic model for optimizing inventory decisions in a multi-stage complex supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(3), pages 409-418, May.
    20. Glock, Christoph H., 2009. "A comment: "Integrated single vendor-single buyer model with stochastic demand and variable lead time"," International Journal of Production Economics, Elsevier, vol. 122(2), pages 790-792, December.
    21. Yang, P. C. & Wee, H. M., 2002. "A single-vendor and multiple-buyers production-inventory policy for a deteriorating item," European Journal of Operational Research, Elsevier, vol. 143(3), pages 570-581, December.
    22. Viswanathan, S., 1998. "Optimal strategy for the integrated vendor-buyer inventory model," European Journal of Operational Research, Elsevier, vol. 105(1), pages 38-42, February.
    23. Chen, Jen-Ming & Lin, I-Chen & Cheng, Hung-Liang, 2010. "Channel coordination under consignment and vendor-managed inventory in a distribution system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 831-843, November.
    24. Zhang, Tinglong & Liang, Liang & Yu, Yugang & Yu, Yan, 2007. "An integrated vendor-managed inventory model for a two-echelon system with order cost reduction," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 241-253, September.
    25. Ouyang, Liang-Yuh & Wu, Kun-Shan & Ho, Chia-Huei, 2004. "Integrated vendor-buyer cooperative models with stochastic demand in controllable lead time," International Journal of Production Economics, Elsevier, vol. 92(3), pages 255-266, December.
    26. Khouja, Moutaz, 2003. "Optimizing inventory decisions in a multi-stage multi-customer supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(3), pages 193-208, May.
    27. Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(1), pages 248-260, March.
    28. Darwish, M.A. & Odah, O.M., 2010. "Vendor managed inventory model for single-vendor multi-retailer supply chains," European Journal of Operational Research, Elsevier, vol. 204(3), pages 473-484, August.
    29. Goyal, S. K., 2000. "On improving the single-vendor single-buyer integrated production inventory model with a generalized policy," European Journal of Operational Research, Elsevier, vol. 125(2), pages 429-430, September.
    30. Sarmah, S.P. & Acharya, D. & Goyal, S.K., 2006. "Buyer vendor coordination models in supply chain management," European Journal of Operational Research, Elsevier, vol. 175(1), pages 1-15, November.
    31. Goyal, Suresh K. & Gupta, Yash P., 1989. "Integrated inventory models: The buyer-vendor coordination," European Journal of Operational Research, Elsevier, vol. 41(3), pages 261-269, August.
    32. David, Israel & Eben-Chaime, Moshe, 2008. "How accurate is the integrated vendor-buyer continuous model?," International Journal of Production Economics, Elsevier, vol. 114(2), pages 805-810, August.
    33. Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(2), pages 493-505, April.
    34. Hsiao, Yu-Cheng, 2008. "Integrated logistic and inventory model for a two-stage supply chain controlled by the reorder and shipping points with sharing information," International Journal of Production Economics, Elsevier, vol. 115(1), pages 229-235, September.
    35. Zavanella, Lucio & Zanoni, Simone, 2009. "A one-vendor multi-buyer integrated production-inventory model: The 'Consignment Stock' case," International Journal of Production Economics, Elsevier, vol. 118(1), pages 225-232, March.
    36. Liu, Xingchu & Cetinkaya, Sila, 2007. "A note on "quality improvement and setup reduction in the joint economic lot size model"," European Journal of Operational Research, Elsevier, vol. 182(1), pages 194-204, October.
    37. Rau, Hsin & Wu, Mei-Ying & Wee, Hui-Ming, 2003. "Integrated inventory model for deteriorating items under a multi-echelon supply chain environment," International Journal of Production Economics, Elsevier, vol. 86(2), pages 155-168, November.
    38. Ben-Daya, M. & Noman, S.M., 2008. "Integrated inventory and inspection policies for stochastic demand," European Journal of Operational Research, Elsevier, vol. 185(1), pages 159-169, February.
    39. Siajadi, Hans & Ibrahim, Raafat N. & Lochert, Paul B., 2006. "Joint economic lot size in distribution system with multiple shipment policy," International Journal of Production Economics, Elsevier, vol. 102(2), pages 302-316, August.
    40. Ben-Daya, M. & Hariga, M., 2004. "Integrated single vendor single buyer model with stochastic demand and variable lead time," International Journal of Production Economics, Elsevier, vol. 92(1), pages 75-80, November.
    41. Darwish, M.A., 2009. "Economic selection of process mean for single-vendor single-buyer supply chain," European Journal of Operational Research, Elsevier, vol. 199(1), pages 162-169, November.
    42. Glock, C. H., 2011. "A multiple-vendor single-buyer integrated inventory model with a variable number of vendors," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57821, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    43. Chen, Jen-Ming & Chen, Tsung-Hui, 2007. "The profit-maximization model for a multi-item distribution channel," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(4), pages 338-354, July.
    44. Gümüs, Mehmet & Jewkes, Elizabeth M. & Bookbinder, James H., 2008. "Impact of consignment inventory and vendor-managed inventory for a two-party supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 502-517, June.
    45. Banerjee, Avijit & Banerjee, Snehamay, 1994. "A coordinated order-up-to inventory control policy for a single supplier and multiple buyers using electronic data interchange," International Journal of Production Economics, Elsevier, vol. 35(1-3), pages 85-91, June.
    46. Hoque, M.A., 2008. "Synchronization in the single-manufacturer multi-buyer integrated inventory supply chain," European Journal of Operational Research, Elsevier, vol. 188(3), pages 811-825, August.
    47. Sawik, Tadeusz, 2009. "Coordinated supply chain scheduling," International Journal of Production Economics, Elsevier, vol. 120(2), pages 437-451, August.
    48. Goyal, Suresh K. & Nebebe, Fassil, 2000. "Determination of economic production-shipment policy for a single-vendor-single-buyer system," European Journal of Operational Research, Elsevier, vol. 121(1), pages 175-178, February.
    49. Chung, Kun-Jen, 2008. "A necessary and sufficient condition for the existence of the optimal solution of a single-vendor single-buyer integrated production-inventory model with process unreliability consideration," International Journal of Production Economics, Elsevier, vol. 113(1), pages 269-274, May.
    50. Xu, Kefeng & Leung, Mark T., 2009. "Stocking policy in a two-party vendor managed channel with space restrictions," International Journal of Production Economics, Elsevier, vol. 117(2), pages 271-285, February.
    51. Hoque, Mohammad A. & Goyal, Suresh K., 2006. "A heuristic solution procedure for an integrated inventory system under controllable lead-time with equal or unequal sized batch shipments between a vendor and a buyer," International Journal of Production Economics, Elsevier, vol. 102(2), pages 217-225, August.
    52. Jaber, M.Y. & Goyal, S.K., 2008. "Coordinating a three-level supply chain with multiple suppliers, a vendor and multiple buyers," International Journal of Production Economics, Elsevier, vol. 116(1), pages 95-103, November.
    53. Sajadieh, Mohsen S. & Akbari Jokar, Mohammad R., 2009. "Optimizing shipment, ordering and pricing policies in a two-stage supply chain with price-sensitive demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(4), pages 564-571, July.
    54. Woo, York Y. & Hsu, Shu-Lu & Wu, Soushan, 2001. "An integrated inventory model for a single vendor and multiple buyers with ordering cost reduction," International Journal of Production Economics, Elsevier, vol. 73(3), pages 203-215, October.
    55. Hsu, Shu-Lu & Lee, Chun Chen, 2009. "Replenishment and lead time decisions in manufacturer-retailer chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(3), pages 398-408, May.
    56. Jaber, Mohamad Y. & Bonney, Maurice & Guiffrida, Alfred L., 2010. "Coordinating a three-level supply chain with learning-based continuous improvement," International Journal of Production Economics, Elsevier, vol. 127(1), pages 27-38, September.
    57. Goyal, S. K., 1995. "A one-vendor multi-buyer integrated inventory model: A comment," European Journal of Operational Research, Elsevier, vol. 82(1), pages 209-210, April.
    58. E J Comeaux & B R Sarker, 2005. "Joint optimization of process improvement investments for supplier–buyer cooperative commerce," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(11), pages 1310-1324, November.
    59. Sarker, Bhaba R. & Diponegoro, Ahmad, 2009. "Optimal production plans and shipment schedules in a supply-chain system with multiple suppliers and multiple buyers," European Journal of Operational Research, Elsevier, vol. 194(3), pages 753-773, May.
    60. Thomas, Douglas J. & Griffin, Paul M., 1996. "Coordinated supply chain management," European Journal of Operational Research, Elsevier, vol. 94(1), pages 1-15, October.
    61. Hsiao, Yu-Cheng, 2008. "A note on integrated single vendor single buyer model with stochastic demand and variable lead time," International Journal of Production Economics, Elsevier, vol. 114(1), pages 294-297, July.
    62. Ben-Daya, M. & Darwish, M. & Ertogral, K., 2008. "The joint economic lot sizing problem: Review and extensions," European Journal of Operational Research, Elsevier, vol. 185(2), pages 726-742, March.
    63. Lee, Wenyih, 2005. "A joint economic lot size model for raw material ordering, manufacturing setup, and finished goods delivering," Omega, Elsevier, vol. 33(2), pages 163-174, April.
    64. Hill, Roger M., 1997. "The single-vendor single-buyer integrated production-inventory model with a generalised policy," European Journal of Operational Research, Elsevier, vol. 97(3), pages 493-499, March.
    65. Banerjee, Avijit & Kim, Seung-Lae & Burton, Jonathan, 2007. "Supply chain coordination through effective multi-stage inventory linkages in a JIT environment," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 271-280, July.
    66. Zhou, Yong-Wu & Wang, Sheng-Dong, 2007. "Optimal production and shipment models for a single-vendor-single-buyer integrated system," European Journal of Operational Research, Elsevier, vol. 180(1), pages 309-328, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ben-Daya, M. & Darwish, M. & Ertogral, K., 2008. "The joint economic lot sizing problem: Review and extensions," European Journal of Operational Research, Elsevier, vol. 185(2), pages 726-742, March.
    2. K. F. Mary Latha & M. Ganesh Kumar & R. Uthayakumar, 2021. "Two echelon economic lot sizing problems with geometric shipment policy backorder price discount and optimal investment to reduce ordering cost," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 1133-1163, December.
    3. Sajadieh, Mohsen S. & Fallahnezhad, Mohammad Saber & Khosravi, Maryam, 2013. "A joint optimal policy for a multiple-suppliers multiple-manufacturers multiple-retailers system," International Journal of Production Economics, Elsevier, vol. 146(2), pages 738-744.
    4. Beck, Fabian G. & Glock, Christoph H. & Kim, Taebok, 2017. "Coordination of a production network with a single buyer and multiple vendors with geometrically increasing batch shipments," International Journal of Production Economics, Elsevier, vol. 193(C), pages 633-646.
    5. Wen-Tsung Ho & Shu-Fang Lai & Yun-Kuei Huang, 2014. "An Optimal Mixed Batch Shipment Policy for Multiple Items in a Single-Supplier Multiple-Retailer Integrated System," Journal of Optimization Theory and Applications, Springer, vol. 160(2), pages 636-658, February.
    6. Zavanella, Lucio & Zanoni, Simone, 2009. "A one-vendor multi-buyer integrated production-inventory model: The 'Consignment Stock' case," International Journal of Production Economics, Elsevier, vol. 118(1), pages 225-232, March.
    7. Glock, Christoph H., 2012. "Coordination of a production network with a single buyer and multiple vendors," International Journal of Production Economics, Elsevier, vol. 135(2), pages 771-780.
    8. Sarmah, S.P. & Acharya, D. & Goyal, S.K., 2006. "Buyer vendor coordination models in supply chain management," European Journal of Operational Research, Elsevier, vol. 175(1), pages 1-15, November.
    9. Sajadieh, Mohsen S. & Larsen, Christian, 2015. "A coordinated manufacturer-retailer model under stochastic demand and production rate," International Journal of Production Economics, Elsevier, vol. 168(C), pages 64-70.
    10. Po-Yu Chen, 2017. "Optimal Retail Price Model for Partial Consignment to Multiple Retailers," Complexity, Hindawi, vol. 2017, pages 1-11, December.
    11. B.C. Giri & S. Sharma, 2014. "Lot sizing and unequal-sized shipment policy for an integrated production-inventory system," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(5), pages 888-901, May.
    12. Rad, Reza Hosseini & Razmi, Jafar & Sangari, Mohamad Sadegh & Ebrahimi, Zahra Fallah, 2014. "Optimizing an integrated vendor-managed inventory system for a single-vendor two-buyer supply chain with determining weighting factor for vendor׳s ordering cost," International Journal of Production Economics, Elsevier, vol. 153(C), pages 295-308.
    13. Muhammad Waqas Iqbal & Muhammad Babar Ramzan & Asif Iqbal Malik, 2022. "Food Preservation within Multi-Echelon Supply Chain Considering Single Setup and Multi-Deliveries of Unequal Lot Size," Sustainability, MDPI, vol. 14(11), pages 1-30, June.
    14. Lee, Shine-Der & Fu, Yen-Chen, 2014. "Joint production and delivery lot sizing for a make-to-order producer–buyer supply chain with transportation cost," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 66(C), pages 23-35.
    15. AlDurgam, Mohammad & Adegbola, Kehinde & Glock, Christoph H., 2017. "A single-vendor single-manufacturer integrated inventory model with stochastic demand and variable production rate," International Journal of Production Economics, Elsevier, vol. 191(C), pages 335-350.
    16. Juman, Z.A.M.S. & Hoque, M.A., 2014. "A heuristic solution technique to attain the minimal total cost bounds of transporting a homogeneous product with varying demands and supplies," European Journal of Operational Research, Elsevier, vol. 239(1), pages 146-156.
    17. Utama, Dana Marsetiya & Santoso, Imam & Hendrawan, Yusuf & Dania, Wike Agustin Prima, 2022. "Integrated procurement-production inventory model in supply chain: A systematic review," Operations Research Perspectives, Elsevier, vol. 9(C).
    18. Ik Sun Lee, 2016. "Production and shipment policy under dynamic demand in the supply chain environments," International Journal of Applied Management Science, Inderscience Enterprises Ltd, vol. 8(1), pages 1-19.
    19. Wee, Hui Ming & Widyadana, Gede Agus, 2013. "Single-vendor single-buyer inventory model with discrete delivery order, random machine unavailability time and lost sales," International Journal of Production Economics, Elsevier, vol. 143(2), pages 574-579.
    20. Taleizadeh, Ata Allah & Shokr, Iman & Konstantaras, Ioannis & VafaeiNejad, Mahyar, 2020. "Stock replenishment policies for a vendor-managed inventory in a retailing system," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:135:y:2012:i:2:p:671-686. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.