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The vendor delivers the items to the buyer in small lots of equally sized shipments. Upon receipt of the items, the buyer will conduct a 100% inspection. Since each lot contains a variable number of defective items, shortages may occur at the buyer. We assume that shortages are permitted and are completely backordered. The objective is to minimize the total joint annual costs incurred by the vendor and the buyer. The expected total annual integrated cost is derived and a solution procedure is provided to find the optimal solution. Numerical examples show that the integrated model gives an impressive cost reduction in comparison to an independent decision by the buyer.<\/jats:p>","DOI":"10.1155\/2012\/679083","type":"journal-article","created":{"date-parts":[[2012,9,14]],"date-time":"2012-09-14T18:08:25Z","timestamp":1347646105000},"page":"1-19","source":"Crossref","is-referenced-by-count":10,"title":["An Integrated Vendor-Buyer Cooperative Inventory Model for Items with Imperfect Quality and Shortage Backordering"],"prefix":"10.47654","volume":"2012","author":[{"given":"Jia-Tzer","family":"Hsu","sequence":"first","affiliation":[{"name":"Department of Computer Science and Information Engineering, Hungkuang University, Shalu, Taichung 43302, Taiwan"}]},{"given":"Lie-Fern","family":"Hsu","sequence":"additional","affiliation":[{"name":"Department of Management, Zicklin School of Business, Baruch College, The City University of New York, One Bernard Baruch Way, P.O. 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