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Pricing and Ordering Decisions in a JELS-Model for Items with Imperfect Quality

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Intelligent Systems in Production Engineering and Maintenance (ISPEM 2018)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 835))

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Abstract

This paper presents a joint economic-lot-size (JELS) model for coordinated inventory replenishment decisions between buyer and vendor. The vendor’s production process is imperfect and produces a certain number of defective items with a known probability density function. The items are delivered to the buyer in equal-sized lots. The buyer faces a linear, price sensitive demand and aims to maximize her expected profit. A mathematical model is developed to determine (a) the selling price, (b) the order quantity, and (c) the number of shipments to the buyer together with this the vendor’s production quantity. A numerical example for an independent as well as integrated policy is provided and its results are discussed.

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Authors and Affiliations

  1. Faculty of Business and Economics, TU Dresden, Dresden, Germany

    Ina Bräuer & Udo Buscher

Authors
  1. Ina Bräuer
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  2. Udo Buscher
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Corresponding author

Correspondence to Udo Buscher .

Editor information

Editors and Affiliations

  1. Faculty of Mechanical Engineering, Wrocław University of Science and Technology, Wrocław, Poland

    Anna Burduk

  2. Faculty of Mechanical Engineering, Wrocław University of Science and Technology, Wrocław, Poland

    Edward Chlebus

  3. Faculty of Mechanical Engineering, Wrocław University of Science and Technology, Wrocław, Poland

    Tomasz Nowakowski

  4. Faculty of Mechanical Engineering, Wrocław University of Science and Technology, Wrocław, Poland

    Agnieszka Tubis

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Bräuer, I., Buscher, U. (2019). Pricing and Ordering Decisions in a JELS-Model for Items with Imperfect Quality. In: Burduk, A., Chlebus, E., Nowakowski, T., Tubis, A. (eds) Intelligent Systems in Production Engineering and Maintenance. ISPEM 2018. Advances in Intelligent Systems and Computing, vol 835. Springer, Cham. https://doi.org/10.1007/978-3-319-97490-3_24

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