Sarem Deilami Moezi - Department of Industrial Management, KAR University, Qazvin
Hesam Saiedy - Department of Industrial Management, KAR University
Akbar Alem Tabriz - Department of Industrial Management, Shahid Behesheti University

This paper deals with the mathematical issues of a two-echelon vendor-buyer supply chain model under vendor managed inventory (VMI). VMI and traditional model of inventory control are compared with mathematical methods by using EOQ model. Criterion for this comparison is total inventory cost in the supply chain. Total costs are determined with respect to two buyers and one supplier in model with the assumption that the supplier faces more products. Results of proposed model of VMI show that in special situations, VMI model acts better than traditional model

Vendor managed inventory, Genetic algorithm, Design of experiments