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A vendor-managed inventory model for deteriorating products

Author

Listed:
  • Anyarin Sakrujiratham
  • Huynh Trung Luong

Abstract

This paper develops a vendor-managed inventory model for deteriorating products in a two-level supply chain which is comprised of one vendor and one retailer in the case when the time to deterioration of the product follows Weibull distribution. It is assumed that the market demand is price-sensitive and shortages are fully backlogged. The proposed inventory model helps to determine the replenishment cycle length and the optimal replenishment quantity to help minimise the total cost of the entire supply chain. Numerical experiments and sensitivity analyses are conducted to illustrate the applicability of the proposed model. Some future research directions are also discussed.

Suggested Citation

  • Anyarin Sakrujiratham & Huynh Trung Luong, 2025. "A vendor-managed inventory model for deteriorating products," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 53(1), pages 58-79.
    • Handle: RePEc:ids:ijores:v:53:y:2025:i:1:p:58-79
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