ABSTRACT
Manufacturer-retailer system-wide integration is one of the keys to successful supply chain management. Clark and Scarf (1960) presented a concept of serial multi-echelon structures to determine the optimal policy. Banerjee (1986) derived a joint economic lot size model for a single vendor, single buyer system when the vendor has a finite production rate. Goyal (1988) extended Banerjee’s model by relaxing the lot-for-lot production assumption. Wee and Jong (1998) studied the integration between parts and finished product with multi-lot size and deterioration.Yang et al. (2002, 2003) derived a collaborative vendor-buyer inventory system considering material lot-size supply or product-batch delivery. Chung et al. (2008) and Yang et al. (2010, 2013) constructed an integrated closed loop supply chain (CLSC) with single or multiple manufacturing and remanufacturing cycles.
