Optimal replenishment policy for an integrated supplier-buyer deteriorating inventory model considering multiple JIT delivery and other cost functions

This study develops an integrated deteriorating inventory policy for a single-buyersingle-supplier model with multiple JIT deliveries considering the transportation cost, inspection cost and the cost of less flexibility. Distinct from the former concept of average inventory level, our paper proposes a significantly different approach to deal with the first production batch and uses a revised method to approximate the relationship between the supplier's production time and the storage time. We provide a rigorous analysis to derive the number of inspection and deliveries, the optimal cycle time of deliveries, and the delivery size for the replenishment policy of the integrated buyer-supplier inventory deteriorating model. It is shown that the unit inspection cost is one of the critical factors affecting the deteriorating inventory model. A numerical example is presented to illustrate the theory.