An Integrated Imperfect Production-Inventory Model with Lot-Size-Dependent Lead-Time and Quality Control
Conference paper
First Online:
Abstract
In this article, an integrated single-vendor single-buyer production-inventory model with stochastic demand and imperfect production process is investigated. The lead-time is assumed to be dependent on the lot-size and a fixed delay due to non-productive times. A methodology is developed to derive the optimal vendor investment required to reduce the defect rate and thereby minimize the total cost of the integrated system. Under the n-shipment policy, an algorithm is proposed so as to minimize the expected integrated total cost and determine the optimal values of the number of shipments, lot-size, safety stock factor, and percentage of defectives. Numerical results are used to illustrate the effect of various parameters on the system.
Keywords
Economic order quantity Integrated model Imperfect production Process quality Variable lead-timeReferences
- 1.Banerjee, A.: A joint economic-lot-size model for purchaser and vendor. Decis. Sci. 17, 292–311 (1986)CrossRefGoogle Scholar
- 2.Ben-Daya, M., Hariga, M.: Economic lot scheduling problem with imperfect production process. J. Oper. Res. Soc. 51, 875–881 (2000)CrossRefMATHGoogle Scholar
- 3.Ben-Daya, M., Hariga, M.: Integrated single vendor single buyer model with stochastic demand and variable lead-time. Int. J. Prod. Econ. 92, 75–80 (2004)CrossRefGoogle Scholar
- 4.Ben-Daya, M., Darwish, M., Ertogral, K.: The joint economic lot sizing problem: review and extensions. Eur. J. Oper. Res. 185, 726–742 (2008)MathSciNetCrossRefMATHGoogle Scholar
- 5.Dey, O., Giri, B.C.: Optimal vendor investment for reducing defect rate in a vendor-buyer integrated system with imperfect production process. Int. J. Prod. Econ. 155, 222–228 (2014)CrossRefGoogle Scholar
- 6.Glock, C.H.: A comment: “integrated single vendor-single buyer model with stochastic demand and variable lead time”. Int. J. Prod. Econ. 122, 790–792 (2009)CrossRefGoogle Scholar
- 7.Glock, C.H.: Lead timer eduction strategies in a single-vendor single-buyer integrated inventory model with lot size-dependent lead times and stochastic demand. Int. J. Prod. Econ. 136, 37–44 (2012)CrossRefGoogle Scholar
- 8.Goyal, S.K.: An integrated inventory model for a single supplier-single customer problem. Int. J. Prod. Res. 15, 107–111 (1976)CrossRefGoogle Scholar
- 9.Goyal, S.K.: A joint economic-lot-size model for purchaser and vendor: a comment. Decis. Sci. 19, 236–241 (1988)CrossRefGoogle Scholar
- 10.Goyal, S.K., Cárdenas-Barrón, L.E.: Note on: economic production quantity model for items with imperfect quality—a practical approach. Int. J. Prod. Econ. 77, 85–87 (2002)CrossRefGoogle Scholar
- 11.Ha, D., Kim, S.L.: Implementation of JIT purchasing: an integrated approach. Prod. Plan. Control 8, 152–157 (1997)CrossRefGoogle Scholar
- 12.Hill, R.M.: The single-vendor single-buyer integrated production-inventory model with a generalized policy. Eur. J. Oper. Res. 97, 493–499 (1997)CrossRefMATHGoogle Scholar
- 13.Hill, R.M.: The optimal production and shipment policy for the single-vendor single-buyer integrated production-inventory problem. Int. J. Prod. Res. 37, 2463–2475 (1999)CrossRefMATHGoogle Scholar
- 14.Hsiao, Y.-C.: Integrated logistic and inventory model for a two-stage supply chain controlled by the reorder and shipping points with sharing information. Int. J. Prod. Econ. 115, 229–235 (2008)CrossRefGoogle Scholar
- 15.Huang, C.K.: An optimal policy for a single-vendor single-buyer integrated production-inventory problem with process unreliability consideration. Int. J. Prod. Econ. 91, 91–98 (2004)CrossRefGoogle Scholar
- 16.Lin, H.J.: An integrated supply chain inventory model. Yugoslav J. Oper. Res. 22 (2012). https://doi.org/10.2298/YJOR110506019L
- 17.Ouyang, L.Y., Wu, K.S., Ho, C.H.: Analysis of optimal vendor-buyer integrated inventory policy involving defective items. Int. J. Adv. Manuf. Technol. 29, 1232–1245 (2006)CrossRefGoogle Scholar
- 18.Ouyang, L.Y., Wu, K.S., Ho, C.H.: Integrated vendor-buyer inventory model with quality improvement and lead-time reduction. Int. J. Prod. Econ. 108, 349–358 (2007)CrossRefGoogle Scholar
- 19.Pan, J.C.-H., Yang, J.S.: A study of an integrated inventory with controllable lead time. Int. J. Prod. Res. 40, 1263–1273 (2002)CrossRefMATHGoogle Scholar
- 20.Porteus, E.L.: Optimal lot sizing, process quality improvement and setup cost reduction. Oper. Res. 36, 137–144 (1986)CrossRefMATHGoogle Scholar
- 21.Salameh, M.K., Jaber, M.Y.: Economic production quantity model with for items with imperfect quality. Int. J. Prod. Econ. 64, 59–64 (2000)CrossRefGoogle Scholar
- 22.Shu, H., Zhou, X.: An optimal policy for a single-vendor and a single-buyer integrated system with setup cost reduction and process-quality improvement. Int. J. Syst. Sci. (2013). https://doi.org/10.1080/00207721.2013.786155
- 23.Zhang, X., Gerchak, Y.: Joint lot sizing and inspection policy in an EOQ model with random yield. IIE Trans. 22, 41–47 (1990)CrossRefGoogle Scholar
Copyright information
© Springer Nature Singapore Pte Ltd. 2018