A single-vendor single-buyer integrated production inventory model for a linear trend in demand and periodic policy

This study considers an integrated production-inventory model which a vendor produces a product and supplies it to a buyer for a linear trend in demand in supply chain environment. Under a periodic delivery policy, we assume production capacity is greater than the largest demand during a finite planning horizon and each production batch is dispatched in an integer multiple of deliveries. The objective is to minimize the joint total costs incurred by the vendor and the buyer. To determine the optimal production schedule, a dynamic programming approach is adapted to solve this proposed model. Two numerical examples are provided to illustrate this proposed model.