AN IMPACT OF LEARNING PROCESS IN PRODUCTION UNDER INTEGRATED VENDOR-BUYER MODEL

In co-ordination system between vendor-buyer has become an interesting issue to improve the performance of supply chain if learning is stimulated within the supply chain. Learning is the process by which proficiency in performing a repetitive task due to gain in previous work experience as a result of reduction in time or cost. It also leads to falls on increased involvement in production process and also in efficiency level. This paper provides an integrated vendor buyer model for quality inspection errors at the buyer's end and learning in production process at the vendor's end. A mathematical model is proposed to find the optimal order quantity and safety factor. A numerical example is provided to illustrate the vendor's learning in production in the expected joint total cost of the system.