A discussion on economic ordering policy of deteriorated item for vendor and buyer

Abstract

Yang and Wee (Economic ordering policy of deteriorated item for vendor and buyer: an integrated approach. Prod. Plan. & Cont., 2000, 11(5), 474–480) proposed an ordering policy for a vendor--buyer integrated model. This note examines the cost component of Yang and Wee's model and gives some insight on the derivation of the holding cost function. We have discovered that their model violates the positive holding cost characteristic and the total quantity-equality characteristic. A proposal to eradicate the problem is given.

Keywords:

• Integrated approach
• Vendor and buyer
• Deterioration
• Economic ordering policy

Acknowledgments

The authors wish to express their deep appreciation to the referees for their suggestions in improving the quality of the paper. They would also like to thank the editor for valuable comments.

Notes

§J. F. Jong alias Chun-Jen Chung.

Additional information

Notes on contributors

J. F. Jong§

§J. F. Jong alias Chun-Jen Chung.