Synchronization in the single-manufacturer multi-buyer integrated inventory supply chain

Considerable attention has previously been given to the single-vendor single-buyer integrated inventory problem, but there has been very little work on the integrated single-vendor multi-buyer case. Although the Joint Replenishment Problem applies in that case, it has not dealt with delivering a single product to multiple buyers when the set-up and inventory costs to the vendor are included. Assuming a close relationship between a manufacturer and buyers for a costless way of benefit sharing, three models are developed, two of which transfer with equal batches (part of a lot) and the third with unequal batches of the product. Optimal solution techniques are presented, a sensitivity analysis of the techniques is carried out, and several numerical problems are solved to support the analytical findings. A comparative study of the results shows that the supply by unequal batches performs better. This study also highlights the limitation of methods used in obtaining the least minimal total cost in the single-vendor single-buyer scenario, and the benefit of an integrated inventory is also discussed. (C) 2007 Elsevier B.V. All rights reserved.