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Comments on ‘vendor-managed inventory with consignment stock agreement for single vendor--single buyer under the emission-trading scheme’

Author

Listed:
  • Chuanxu Wang
  • Rongbing Huang

Abstract

Zanoni, Mazzoldi, and Jaber [Zanoni, S., L. Mazzoldi, and M. Y., Jaber. 2014. Vendor-managed inventory with consignment stock agreement for single vendor--single buyer under the emission-trading scheme. International Journal of Production Research 52 (1): 20--31] consider a joint economic lot size problem under the vendor-managed inventory with consignment stock agreement and an emission-trading scheme. They show that the total cost of the system is a jointly convex function by simply showing that every element of the Hessian is positive. Noticing this mistake, we analyse the same problem in this technical note. We first provide a closed-form solution when the production rate is given. In order to avoid a complete search over all possible production rates, we then develop an efficient continuous approximation algorithm. Computational experiment shows that the approximation algorithm is effective and efficient.

Suggested Citation

  • Chuanxu Wang & Rongbing Huang, 2016. "Comments on ‘vendor-managed inventory with consignment stock agreement for single vendor--single buyer under the emission-trading scheme’," International Journal of Production Research, Taylor & Francis Journals, vol. 54(13), pages 4081-4086, July.
  • Handle: RePEc:taf:tprsxx:v:54:y:2016:i:13:p:4081-4086
    DOI: 10.1080/00207543.2015.1106610
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