A model on determining the logistics lot-size of supplier under make-to-order

The relation between supplier and buyer is an important problem in the research of supply chain management. Enough communication and good coordination should benefit both sides. But, sometimes, the supplier or the buyer is at a status that more powerful than the other. So, the puny one always arrange its operation planning according to the powerful one. In this paper, we assume that the buyer is more powerful. And at first, economic order quantity model of buyer is presented. Then, models and corresponding algorithms on determining the logistics lot-size of supplier that based on minimizing the total expenditure of supplier's production system under bottleneck and non-bottleneck are presented differently. That will enable the supplier minimize its total expenditure while meeting the buyer's demand.