An incentive supply chain buyer vendor inventory model for deteriorating products with constant demand

Both coordination and non-coordination approaches have benefits and drawbacks when it comes to a productive production process. Although coordination can result in more productivity, lower expenses, and happier customers, building and maintaining successful partnerships takes a substantial time and resource commitment. In the short term, non-coordination could be easier and more economical, but over time, it might result in inefficiencies and lost opportunities. Additionally, the particular industry and market conditions may influence the decision between coordination and non-coordination. In this work, we develop the idea that supply chain management plays a crucial role in timely and cost-effective delivery of goods and services. Stated differently, the goal of an inventory question is to minimise the overall cost of a system through decision-making. Additionally, we create an objective manufacturing inventory model with price discount and fully backlogged shortages for the buyer-manufacturer. The paper that generates greater profit focusses on the benefits to the manufacturer and the buyer. Additionally, examine the proportion of savings when holding costs and shortage costs rise concurrently and the manufacturer’s profit exceeds the buyer’s profit.