Sains Malaysiana 41(3)(2012): 367–370

Integrated Models for Shipping a Vendor’s Final Production Batch to a Single Buyer

Under Linearly Decreasing Demand for Consignment Policy

(Model Integrasi untuk Penghantaran Bac Pengeluaran Terakhir kepada Pembeli

di bawah Permintaan Menyusut Secara Linear bagi Polisi Konsainmen)

M. Omar & S.S. Supadi*

Institut Sains Matematik, Fakulti Sains, Universiti Malaya, 50603 Kuala Lumpur, Malaysia

Received: 18 May 2011 / Accepted: 19 September 2011

ABSTRACT

This paper considers the problem of a vendor or manufacturer supplying a final production batch to a single buyer under linearly decreasing demand for a finite time horizon. The vendor manufactures the product at a finite rate and ships the output to the buyer. In this model we considered the case where the holding cost at the vendor is greater than the buyer and propose a consignment model. The objective was to minimize the total cost of stock transfer from vendor to buyer and stock holding at the vendor and the buyer. We derived the structure of the optimal solution and illustrate the proposed models with numerical examples.

Keywords: Consignment policy; integrated; single buyer; single vendor; varied demand

ABSTRAK

Kertas ini membincangkan masalah penjual atau pengeluar membekalkan bahagian pengeluaran terakhir kepada seorang pembeli di bawah permintaan menyusut secara linear dengan selang masa terhingga. Penjual mengeluarkan produk pada kadar terhingga dan menghantar output kepada pembeli. Dalam model ini kami membincangkan kes dengan kos pegangan penjual adalah lebih tinggi daripada pembeli dan mencadangkan model konsainmen. Objektifnya adalah untuk meminimumkan jumlah kos penghantaran stok daripada penjual kepada pembeli dan kos pemegangan stok bagi penjual dan pembeli. Kami membina struktur penyelesaian optimum dan menggambarkan model yang dicadangkan melalui contoh-contoh berangka.

Kata kunci: Integrasi; pembeli tunggal; penjual tunggal; permintaan berubah; polisi konsainmen

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*Corresponding author; email: suzlin@um.edu.my