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If flexibility in order quantity is your primary flexibility orientation, this means that your operations have to be very scalable.
(Q) order quantity.
Order quantity for the buyer.
the retailer's order quantity.
In addition, optimal order quantity is calculated.
Q the order quantity for the retailer.
Q i order quantity for product i.
Retailer's order quantity (decision variable).
The warehouse's order quantity is integer multiples of the retailer's order quantity.
Carrying cost increase with increase in re-order quantity while ordering cost decreases with increase order quantity.
The quantity delivered to the buyer is the minimum of order quantity and production output.
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