Integrated Coordination Inventory Model for Buyer – Vendor Using Lagrange Multiplier Technique

This study proposes integrated inventory model for buyer – vendor under coordination and non coordination situations. Integrated system cost is developed for system optimization and optimal values are found by using analytical geometry and algebraic method. In addition, the model considered inventory level constraint for both situations. Lagrange’s multiplier technique is used to solve this type of problems. Numerical examples are presented to illustrate the developed model.