This paper mainly deals with optimum production coordination inventory model without shortages for perishable products. The decentralized model with and without coordination to analyze the benefit costs of both the retailer and supplier for coordinating the supply chain is proposed in this paper. The quantity discount is implemented for coordinating the supply chain. The paper also includes a detailed numerical example for more understanding of the proposed strategy.
Keywords: Inventory, Quantity discount, Coordination, Perishable products |