Two-Echelon Inventory Optimization for Imperfect Production System under Quality Competition Environment
Joint Authors
Lai, Xinfeng
Giri, Bibhas C.
Chiu, Chun-Hung
Chen, Zhixiang
Source
Mathematical Problems in Engineering
Issue
Vol. 2015, Issue 2015 (31 Dec. 2015), pp.1-11, 11 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2015-01-22
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Abstract EN
This paper develops two integrated optimization models of two-echelon inventory for imperfect production system under quality competition environment, in which the vendor’s production process is assumed to be imperfect, and JIT delivery policy is implemented to ship product from the vendor to the buyer.
In the first model, product defect rate is fixed, and, in the second model, quality improvement investment is function of defect rate.
The optimal policies of ordering quantity of buyer and shipment from vendor to buyer are obtained to minimize the expected annual total cost of vendor and buyer.
Numerical examples are used to demonstrate the effectiveness and feasibility of the models.
Sensitivity analysis is taken to analyze the impact of demand, production rate, and defect rate on the solution.
Implications are highlighted in that both the vendor and the buyer can benefit from the vendor’s investing in quality improvement.
American Psychological Association (APA)
Lai, Xinfeng& Chen, Zhixiang& Giri, Bibhas C.& Chiu, Chun-Hung. 2015. Two-Echelon Inventory Optimization for Imperfect Production System under Quality Competition Environment. Mathematical Problems in Engineering،Vol. 2015, no. 2015, pp.1-11.
https://search.emarefa.net/detail/BIM-1073529
Modern Language Association (MLA)
Lai, Xinfeng…[et al.]. Two-Echelon Inventory Optimization for Imperfect Production System under Quality Competition Environment. Mathematical Problems in Engineering No. 2015 (2015), pp.1-11.
https://search.emarefa.net/detail/BIM-1073529
American Medical Association (AMA)
Lai, Xinfeng& Chen, Zhixiang& Giri, Bibhas C.& Chiu, Chun-Hung. Two-Echelon Inventory Optimization for Imperfect Production System under Quality Competition Environment. Mathematical Problems in Engineering. 2015. Vol. 2015, no. 2015, pp.1-11.
https://search.emarefa.net/detail/BIM-1073529
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1073529