Optimizing replenishment policy for short-life-cycle product with recovery considering uncertain delivery

Due to increasing competition over the past decade, enterprises have to engage more effort in improving customer service and to increase company profits through effective supply chain management. To optimize the system, the usually adversarial relationships between the suppliers and the buyers have been replaced by the collaborative partnerships. We develop a supplier-buyer production inventory model to derive the optimal ordering quantity policy that maximizes the expected profit with or without coordination under uncertain delivery and demand.