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    A Multiple Items EPQ/EOQ Model for a Vendor and Multiple Buyers System Considering Continuous and Discrete Demand Simultaneously

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    This is the author accepted manuscript. The final version is available from IOP Publishing via the DOI in this record.APCOMS-IMEC 2017: joint conference of The 4th Asia Pacific Conference on Manufacturing Systems and The 3rd International Manufacturing Engineering Conference, 7-8 December 2017, Yogyakarta, IndonesiaThis paper proposed a mathematical model for multiple items Economic Production and Order Quantity (EPQ/EOQ) with considering continuous and discrete demand simultaneously in a system consisting of a vendor and multiple buyers. This model is used to investigate the optimal production lot size of the vendor and the number of shipments policy of orders to multiple buyers. The model considers the multiple buyers’ holding cost as well as transportation cost, which minimize the total production and inventory costs of the system. The continuous demand from any other customers can be fulfilled anytime by the vendor while the discrete demand from multiple buyers can be fulfilled by the vendor using the multiple delivery policy with a number of shipments of items in the production cycle time. A mathematical model is developed to illustrate the system based on EPQ and EOQ model. Solution procedures are proposed to solve the model using a Mixed Integer Non Linear Programming (MINLP) and algorithm methods. Then, the numerical example is provided to illustrate the system and results are discussed
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