A Two-Warehouse Inventory Model With Rework Process and Time-Varying Demand

Nurhasril, Nurnadiah; Supadi, Siti Suzlin; Omar, Prof. Dr. Mohd

doi:10.22452/mjs.vol42no1.3

Cited by 5 publications

(1 citation statement)

References 30 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…It is the better option to follow a last-in-first-out policy in order to release the items in the rental warehouse first to satisfy the demands even if the items in the rental house are stored last after filling their own house. In article [41], a two-warehouse inventory system (as it includes an additional rental warehouse to store the excess items) with time-dependent demand and rework on defective items is discussed. It reveals that production cycle time minimizes the total relevant cost by the generalized reduced gradient method and establishes that the last-in-first-out system is less expensive while the holding cost in RW is higher.…”

Section: Literature Review and Model Initiationmentioning

confidence: 99%

A Study on Two-Warehouse Inventory Systems with Integrated Multi-Purpose Production Unit and Partitioned Rental Warehouse

Jagadeesan,

Rajamanickam,

Schindlerova

et al. 2023

Mathematics

View full text Add to dashboard Cite

A study of two warehouse inventory systems with a production unit is developed in this article with some constraints which are of practical applicability to optimize the total production cycle and its cost. A production unit evolves in three different states to retain its quality and prolong its lifetime: the state of producing items, the state of reworking the identified defective items, and the state of being idle. It processes the items up to a certain time point. The screening process starts immediately after a product comes out of the production unit. The classified non-defective items are first stored in own warehouse (OW), after filling to its maximum capacity, and the remaining items fill in the first block RW1 of the rental warehouse RW. All identified defective items are stored in the second block RW2 of RW. The holding cost of an item is higher in RW than OW. All defective items are sent to the production unit for re-do processes as a single lot immediately after the stop of the production and re-do items are stored in RW1 to satisfy the demand. The items in the RW1 are of higher priority in satisfying the demands after the stop of the production unit in producing new items as to deduce the total cost. Demand is assumed as both time and advertisement dependent and is encouraged once production starts. The deterioration rate differs in both warehouses. No backlog is entertained. The study is directed to achieve optimum total cycle cost towards the attainment of the optimum production time slot and the entire cycle of the system. We have arrived at explicit expressions for the total cost function of the entire production cycle. An analytic optimization process of the discriminant method is employed in the form of an algorithm to arrive at the optimum total cost. It provides a numerical illustration of a specific environment. The implications of the current research work are as follows. The optimum utility of production units in three different states in arriving at the optimum total cost is extensively studied with respect to deterioration, demand, and production rates. It also examined the influence of fluctuating deterioration, demand, and production parameters in arriving at optimum deterioration cost, holding cost, and total cycle cost, as they have important managerial insights. The effect of rental charges on the optimum total cost is examined as the system is used for multi-purpose storage.

show abstract

Section: Literature Review and Model Initiationmentioning

confidence: 99%