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The Individually Responsible and Rational Decision Approach to Economic Lot Sizes for One Vendor and Many Purchasers: A Comment *
Author(s) -
Goyal S. K.,
Srinivasan G.
Publication year - 1992
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1992.tb00418.x
Subject(s) - vendor , operations research , computer science , joint (building) , operations management , business , marketing , economics , engineering , architectural engineering
Joglekar and Tharthare [6] presented an alternate approach for minimizing total inventory carrying and ordering costs of a vendor and the purchaser(s). This approach permits the vendor and the purchaser(s) to rationally select their operating policies. Joglekar and Tharthare claimed that their approach is more economical than the joint lot‐size approach. In this note we identify some conceptual issues in their approach and demonstrate the superiority of the joint lot‐size approach with the help of an example.