Single Product – Multiple Manufactures Inventory  Model For Fixed Lifetime Product with and Without  Coordination

P. Muniappan; R. Uthayakumar; S. Ganesh

Volume : IV, Issue : II, February - 2014

Single Product – Multiple Manufactures Inventory Model For Fixed Lifetime Product with and Without Coordination

P. Muniappan, R. Uthayakumar, S. Ganesh

Abstract :

The cost of business organization is affected by the production and inventory decision. This paper deals with the single product - multiple manufactures inventory model with fixed lifetime product with and without coordination. Each manufacturer uses an optimal inventory policy and incurs standard inventory holding cost, production cost and setup cost. The objective is to find optimal multiples of order that minimize the manufacturer’s total inventory cost. The savings percentage of Manufacturer1 and Manufacturer2 is also determined. It proves that the quantity discount mechanism attains system optimization. The results are discussed with numerical examples.