IDEAS home Printed from https://ideas.repec.org/a/ids/ijores/v31y2018i2p141-163.html
   My bibliography  Save this article

Single-vendor single-buyer optimal consignment policy with generic demand distribution by considering some realistic factors

Author

Listed:
  • S.M. Shahidul Islam
  • Mohammad Abdul Hoque

Abstract

Consignment policy (CP) is a new fruitful technique to integrated inventory supply chain management. Success of the CP mostly depends upon the vendor's and the buyer's reliable collaboration. These strategic techniques were considered in the prior models but they were dealt without taking into account some realistic factors, such as work-in-process inventory, shipping time inventory, selling period inventory of sold products, transshipment cost, ordering cost, setup cost, and buyer's warehouse capacity constraint. This study presents a single-vendor single-buyer profit maximising consignment model with generalised demand distribution but considering these factors along with the ones considered previously. This model is compared with a traditional policy (TP) model developed in the similar fashion. Numerical examples with several patterns of demand distributions are set to illustrate the policies. Results show that both parties can earn more profit under CP than that of TP. Retail price markdown is analysed for the managerial implications.

Suggested Citation

  • S.M. Shahidul Islam & Mohammad Abdul Hoque, 2018. "Single-vendor single-buyer optimal consignment policy with generic demand distribution by considering some realistic factors," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 31(2), pages 141-163.
    • Handle: RePEc:ids:ijores:v:31:y:2018:i:2:p:141-163
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=89127
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    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:ids:ijores:v:31:y:2018:i:2:p:141-163. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=170 .

    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.