On the equivalence of some supply chain coordination models

Abstract

Existing literature on supply chain coordination considers various mechanisms such as joint economic lot size, quantity discount and vendor managed inventory as distinct and disparate entities. In this paper, we establish their equivalence through simple models and show that the said mechanisms lead to the same optimal solution under any given set of parameters of the system. Comments on the applicability of these models have also been provided. � 2014, Operational Research Society of India.