AN INTEGRATED INVENTORY POLICY WITH DETERIORATION FOR A SINGLE VENDOR AND MULTIPLE BUYERS IN SUPPLY CHAIN WHEN DEMAND IS QUADRATIC

Abstract

In this paper, an integrated inventory policy for deteriorating item is developed considering single vendor and multi buyers
in supply chain system, when demand of a product is increasing function with time. The model assumed constant rate of deterioration at each level of supply chain. A numerical example is shown to validate the results of the proposed development. The sensitivity analysis is carried out for certain model parameters. It is observed that the integrated decision for inventory policy between the players of supply chain lowers the total joint cost compared with an independent decision made by the supplier and all N buyers.