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An Integrated Vendor-Buyer Cooperative Inventory Model for Items with Imperfect Quality and Shortage Backordering
Joint Authors
Source
Issue
Vol. 2012, Issue 2012 (31 Dec. 2012), pp.1-19, 19 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2012-09-13
Country of Publication
Egypt
No. of Pages
19
Main Subjects
Economics & Business Administration
Business Administration
Abstract EN
We develop a model to determine an integrated vendor-buyer inventory policy for items with imperfect quality and planned backorders.
The production process is imperfect and produces a certain number of defective items with a known probability density function.
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.
American Psychological Association (APA)
Hsu, Jia-Tzer& Hsu, Lie-Fern. 2012. An Integrated Vendor-Buyer Cooperative Inventory Model for Items with Imperfect Quality and Shortage Backordering. Advances in Decision Sciences،Vol. 2012, no. 2012, pp.1-19.
https://search.emarefa.net/detail/BIM-489828
Modern Language Association (MLA)
Hsu, Jia-Tzer& Hsu, Lie-Fern. An Integrated Vendor-Buyer Cooperative Inventory Model for Items with Imperfect Quality and Shortage Backordering. Advances in Decision Sciences No. 2012 (2012), pp.1-19.
https://search.emarefa.net/detail/BIM-489828
American Medical Association (AMA)
Hsu, Jia-Tzer& Hsu, Lie-Fern. An Integrated Vendor-Buyer Cooperative Inventory Model for Items with Imperfect Quality and Shortage Backordering. Advances in Decision Sciences. 2012. Vol. 2012, no. 2012, pp.1-19.
https://search.emarefa.net/detail/BIM-489828
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-489828