The single vendor single buyer integrated production inventory problem with lead time proportional to lot size and space restriction is studied. Demand is assumed to be stochastic and the continuous review inventory policy is used for the buyer. If the buyer places an order with lots of products, then the vendor will produce lots of products and the products will be transferred to the buyer with equal shipments many times. Mathematical model for this problem is defined and a Lagrangian relaxation approach is developed.

• 이동주(공주대학교)
• 김정아(공주대학교)