A ONE-VENDOR MULTI-BUYER INTEGRATED INVENTORY MODEL

We consider a one-vendor multi-buyer integrated inventory model. The vendor seeks to minimize his total annual cost subject to the maximum costs which buyers are prepared to incur. In order to implement this model, the vendor only needs to know buyer's annual demand and previous order frequency, which can be inferred from buyer's past ordering behavior. We find the optimal solution for the one-vendor one-buyer case, and present a heuristic approach for the one-vendor multi-buyer case.