An inventory model with shortages for imperfect items using substitution of two products

Mukhopadhyay, Arindum; Goswami, Adrijit

doi:10.1504/ijor.2017.10007274

IJOR

2017

DOI: 10.1504/ijor.2017.10007274

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An inventory model with shortages for imperfect items using substitution of two products

Arindum Mukhopadhyay

Adrijit Goswami

Abstract: Inventory models with imperfect quality items are studied by researchers in past two decades. Till now none of them have considered the effect of substitutions to cope up with shortage and avoid lost sales. This paper presents an EOQ approach for inventory system with shortages and two types of products with imperfect quality by one way substitution.Our model provides significant advantage for substitution case while maintaining its inherent simplicity. We have provided numerical example and sensitivity analys… Show more

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Cited by 3 publications

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A Higher-Order Markov Model for a Hybrid Inventory System with Probabilistic Remanufacturing Demand

Dhaiban

2023

Stochastics and Quality Control

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This study develops a higher-order Markov model (HOM) for an inventory system with remanufacturing, substitution, and lost sales. Defective and disposed items are other factors that are considered in addition to probabilistic demand for both manufacturing and remanufacturing items. One year is the warranty period for items manufactured, and items sold return from customers to the manufacturer in increasing cumulative percentages over the months of the year. To the best our knowledge, a higher-order Markov model has rarely been used in a hybrid inventory system. The challenge is how to determine the steady state of the system with the probable demand for manufacturing and remanufacturing. We propose a new search algorithm to select the best control strategy from several strategies, and then compare it with the two-phase local search algorithm. Each state deals with (12) a probabilistic demand (policy), so the system steady state is set to (22632) policies in total for each production plan. The results showed profit maximization using the new search algorithm compared with the two-phase local search algorithm. Also, an increase in defective and returned items over time, and therefore an increase in remanufactured items. But it does not satisfy all the demand, so manufacturing increases over time due to substitution. Substitution strategy leads to increase the expected average profit.

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A Higher-Order Markov Model for a Hybrid Inventory System with Probabilistic Remanufacturing Demand

Dhaiban

2023

Stochastics and Quality Control

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Impact of Imperfect Quality Items on Inventory Management for Two Warehouses with Shortages

Aastha¹,

Pareek²,

Cárdenas–Barrón³

et al. 2020

Int J Math, Eng, Manag Sci

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Generally, the majority of the inventory models work on the concept that overall units produced must be perfect in terms of quality and that the storage capacity of the warehouse is unlimited. In fact, under realistic conditions, it is not possible to manufacture products with complete perfection. Furthermore, there are always some limits associated with storage capacity of the warehouse. This paper formulates an inventory model that considers the impact of imperfect quality items and shortages. The cost of storage in rented warehouse (RW) is greater than own warehouse (OW) due to fact there are better preservation facilities in RW. This work considers that defective items are completely withdrawn after the inspection process. The purpose of this inventory model is to establish the optimal order quantity and backorder size that maximize the total profit. Some numerical examples are solved, and a sensitivity analysis is included.

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An EOQ Model of Selling-Price-Dependent Demand for Non-Instantaneous Deteriorating Items during the Pandemic COVID-19

Indrajitsingha¹,

Raula²,

Samanta

et al. 2021

Walailak J Sci & Tech

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A pricing factor plays a dominant role in consumer behavior in most countries affected by the COVID19 pandemic. People have lost their job while others renegotiated for low-paying jobs during this pandemic. Thus, this article aims to develop a viable model to consider various aspects of the COVID19 pandemic. Here, we develop an optimal ordering quantity inventory model of deteriorating items, which are still in demand depending upon the selling price of the product. The items are assumed to be non-instantaneous deteriorating. The shortage is allowed in lead time and is partially backlogged. A solution procedure is presented to determine an optimal cycle, order quantity, and total average cost. A realistic numerical example is given to validate the proposed model by changing different systems of parameters, where sensitivity analysis has been carried out. The effectiveness of the system has been observed through graphical representation. HIGHLIGHTS The study considers the inventory model for non-instantaneous deteriorating items. Selling price dependent demand is incorporated. The shortage is allowed in lead time and is partially backlogged. Theoretical results have been formed to characterize the optimal solutions. The effect of key parameters is studies rigorously. GRAPHICAL ABSTRACT

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An inventory model with shortages for imperfect items using substitution of two products

Cited by 3 publications

References 18 publications

A Higher-Order Markov Model for a Hybrid Inventory System with Probabilistic Remanufacturing Demand

A Higher-Order Markov Model for a Hybrid Inventory System with Probabilistic Remanufacturing Demand

Impact of Imperfect Quality Items on Inventory Management for Two Warehouses with Shortages

An EOQ Model of Selling-Price-Dependent Demand for Non-Instantaneous Deteriorating Items during the Pandemic COVID-19

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