Recently, Kim and Ha [S.-L. Kim and D. Ha, A JIT lot-splitting model for supply chain management: Enhancing buyersupplier linkage, Internat. J. Prod. Econ. 86 (2003), 1–10] proposed a model to determine the optimal order quantity, the number of shipments and size delivered over a finite planning horizon in a JIT single-buyer and single-supplier scenario. Kim and Ha’s model is interesting. However, their solution procedure and some theoretical results may not be generally true. In this paper, we propose an analytical solution procedure free from using convexity to correct and improve on Kim and Ha’s model. Some flaws shown in Kim and Ha’s paper are also corrected. This paper further presents sufficient conditions to illustrate when the single-setup-multiple-delivery (SSMD) policy is more beneficial over the single-delivery policy. Furthermore, this paper finds the minimum order quantity Qmin that makes the SSMD policy favorable over the single-del!ivery policy. Numerical examples are provided to illustrate the above results.
Chung, Kun-Jen; Lin, Tien-Yu; and M. Srivastava, H.
"An Alternative Solution Technique of the JIT Lot-Splitting Model for Supply Chain Management,"
Applied Mathematics & Information Sciences: Vol. 09
, Article 5.
Available at: https://dc.naturalspublishing.com/amis/vol09/iss2/5