A Sustainable Inventory Model for Setup and Ordering Cost Reduction under a Controllable Lead Time

In this study, we consider an integrated vendor-buyer supply chain (SC) model. This paper investigates the impact of setup and ordering cost reduction in a continuous review inventory policy with controllable lead time. The probability distribution is the most aspect of this model, within free distribution, including as mean and standard deviation. We obtain the annual minimum cost by considering setup and ordering cost reductions. The solution procedure is used to determine the optimal solutions of order quantity, setup cost, ordering cost, lead time, and the number of shipments from the single vendor (SV)-single buyer (SB) in one production run. This model has vital perspectives to present a venture by considering with and without distribution under a controllable lead time.