Optimal Buyer’s Replenishment Policy in the Integrated Inventory Model for Imperfect Items
Joint Authors
Yueli, Lu
Jiangtao, Mo
Yucheng, Wei
Source
Mathematical Problems in Engineering
Issue
Vol. 2016, Issue 2016 (31 Dec. 2016), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2016-08-29
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
In the classical economic order quantity (EOQ) models, a common unrealistic assumption is that all the items received are of good quality.
However, in realistic environment, a received shipment usually contains a fraction of imperfect quality items.
These imperfect items may be scrapped, reworked at a cost, or salvaged at a discounted price.
While the percentage of imperfect items is random, the optimal ordering cycle is rarely considered in current literatures.
This paper revisits the model (Maddah and Jaber, 2008) and extends it by assuming that the ordering cycle is determined by the demand rate, delivery quantity per shipment, and the mathematical expectation of the defective rate.
The possibility of stockout or residue in the end of a cycle will be considered, and the loss of stockout and the salvage of the residue are counted into the cost.
Besides, we consider consolidating the shipments of imperfect items over multiple deliveries.
Thus, an integrated vendor-buyer inventory model for imperfect quality items with equal-size shipment policy is established to derive the optimal ordering cycle, ordering quantity, and number of deliveries.
The computational method of the optimal delivery quantity per shipment and number of deliveries is given through theoretical results.
Finally, sensitivity of main parameters is analyzed through simulation experiments and shown by some figures.
American Psychological Association (APA)
Yueli, Lu& Jiangtao, Mo& Yucheng, Wei. 2016. Optimal Buyer’s Replenishment Policy in the Integrated Inventory Model for Imperfect Items. Mathematical Problems in Engineering،Vol. 2016, no. 2016, pp.1-10.
https://search.emarefa.net/detail/BIM-1112314
Modern Language Association (MLA)
Yueli, Lu…[et al.]. Optimal Buyer’s Replenishment Policy in the Integrated Inventory Model for Imperfect Items. Mathematical Problems in Engineering No. 2016 (2016), pp.1-10.
https://search.emarefa.net/detail/BIM-1112314
American Medical Association (AMA)
Yueli, Lu& Jiangtao, Mo& Yucheng, Wei. Optimal Buyer’s Replenishment Policy in the Integrated Inventory Model for Imperfect Items. Mathematical Problems in Engineering. 2016. Vol. 2016, no. 2016, pp.1-10.
https://search.emarefa.net/detail/BIM-1112314
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1112314