In order to remove the inefficient cost occurred among companies, the cooperation among companies are required. The single vendor-single buyer integrated model is often studied for that purpose. Buyer’s demand follows normal distribution, and vendor’s inventory policy use a continuous inventory review policy. If buyer places order, then vendor begins to make products and transfer those products to the buyer several times. In real situation, the size of company’s warehouse is restricted, space limit constraint is considered. There are three approaches for the single vendor-single buyer integrated model with space limit: equal batch shipment approach, increasing batch shipment approach, and mixed approach. In this paper, these approaches are compared one another and we discuss about the advantages and disadvantages of these approaches.

This paper is to analyze an integrated production and inventory model in a single-vendor multi-buyer supply chain. The vendor is defined as the manufacturer and the buyers as the retailers. The product that the manufacturer produces is supplied to the retailers with constant periodic time interval. The production rate of the manufacturer is constant for the time. The demand of the retailers is constant for the time. The cycle time of the vendor is defined as the elapsed time from the start of the production to the start of the next production, while the cycle times of the buyer as the elapsed time between the adjacent supply times from the vendor to the buyer. The cycle times of the vendor and the buyers that minimizes the total cost in a supply chain are analyzed. The cost factors are the production setup cost and the inventory holding cost of the manufacturer, the ordering cost and the inventory holding cost of the retailers. The cycle time of the vendor is investigated through the cycle time that satisfies economic production quantity with the production setup cost and the inventory holding cost of the manufacturer. An integrated production and inventory model is formulated, and an algorithm is developed. An numerical example is presented to explain the algorithm. The solution of the algorithm for the numerical examples is compared with that of genetic algorithm. Numerical example shows that the vendor and the buyers can save cost by integrated decision making.

In this paper, we consider a single-vendor single-buyer supply chain problem where a single vendor order raw materials from its supplier, then using its manufacturing processes converts the raw materials to finished goods in order to deliver finished good