Supplier-customer negotiation model: The vendor receives a bonus for holding the inventory
This article proposes a model based on economic order quantity (EOQ) for the negotiation between supplier and customer when a benefit is derived to the supplier from taking responsibility for the inventory holding costs. In turn, the customer can afford a smaller batch size since the holding savings...
| Autores: | , |
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2018 |
| País: | España |
| Institución: | Universitat Politècnica de Catalunya (UPC) |
| Repositorio: | UPCommons. Portal del coneixement obert de la UPC |
| Idioma: | inglés |
| OAI Identifier: | oai:upcommons.upc.edu:2117/360101 |
| Acceso en línea: | https://hdl.handle.net/2117/360101 https://dx.doi.org/10.26595/eamr.2014.5.1.5 |
| Access Level: | acceso abierto |
| Palabra clave: | Inventory control Inventory costs Optimal batch EOQ model Inventory management model Gestió d'estocs Àrees temàtiques de la UPC::Economia i organització d'empreses |
| Sumario: | This article proposes a model based on economic order quantity (EOQ) for the negotiation between supplier and customer when a benefit is derived to the supplier from taking responsibility for the inventory holding costs. In turn, the customer can afford a smaller batch size since the holding savings enable it to place a greater number of orders. Taking the original situation in which the customer supports both holding and ordering cost as an initial point, the paper analyses the benefits for the supplier and customer in a new situation in which the supplier supports the holding of the inventory. The customer would agree to change to the new scenario due to the savings in the holding cost. The provider would also agree if a bonus is achieved as compensation for the investment in holding costs. The model provides clues for a win-win negotiation between a supplier and a buyer. |
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