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An integrated inventory model for a single supplier-single customer problem.

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  • Additional Information
    • Abstract:
      In normal business practice, a supplier's policy regarding the manufacture of a product is greatly influenced by the size and the frequency of purchase orders placed by the customers. If the orders for the supply of the product are received frequently, then it becomes essential for the supplier to keep the product in stock practically all the time. However, if there is only one customer for a given product then the orders for the products are received at regular time intervals. Therefore, based on the prior knowledge of the size and the timing of orders, a supplier can work out the best production policy for the product. When the customer and supplier work independently then the customer will place orders based on his economic purchasing policy and then the supplier will determine his economic production policy for the product.