Abstract
To cope with the competitiveness of
global market, the enterprise’s decision has
now been based on seeking a global optimum
of supply chain. The inventory policy of
enterprise can be made by the all members of
supply chain in order to reach the win-win for
both venders and buyers. This study
considers the problem of one-vender
supplying a product to multi-buyer
(customers). The objective is to minimize the
vender’s total costs of order processing and
transportation subject to the maximum costs
which buyers are prepared to incur. In the
proposed model, the vender offers a price
discount to entice the buyers to accept the
policy of common replenishment epochs
(CRE). Finally, this study evaluates the
benefit of the proposed coordinated strategy
with a numerical study.
Keywords: Supply Chain, Common
Replenishment Epochs, Replenishment
Policy