Impacts of inspection errors and trade credits on the economic order quantity model for items with imperfect quality

Chang, Chun-Tao; Cheng, Ming‐Chuan; Soong, Pao-Yi

doi:10.1080/23302674.2015.1036473

Cited by 15 publications

(10 citation statements)

References 47 publications

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“…Ouyang et al (2016) investigated the optimal order strategy through cost analysis; when an order is limited and the defect rate of products is fixed, the rising price might affect the replenishment strategy. Chang et al (2016) developed an EOQ model to maximize the total profit of the optimal order strategy for retailers, which included permission for payment postponement, defective products, and inspection errors. However, there is a lack of studies on the optimal order quantity with food safety issues.…”

Section: Food Supply Chain Management (Fscm) and Optimal Order Quantitymentioning

confidence: 99%

Risk Management for the Optimal Order Quantity by Risk-Averse Suppliers of Food Raw Materials

Lin

Hsu

2018

IJFS

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In uncertain food safety environments, the suppliers of food raw materials (FRM) are facing crucial food safety issues. Therefore, this article aims to probe the risk-averse attitude of FRM suppliers in the face changing marketing environments, in order to establish a decision-making theory as a standard reference for optimization methods to satisfy the maximum expected profit and utility function for the optimal order quantity of FRM suppliers’ decision-making. We assume that urgent orders are permitted when products are out of stock, and surplus products will be sold at discounted prices, as based on the food safety circumstances and the differences of market acceptance (optimistic/normal/pessimistic), in order to affect the procurement costs and selling prices. The results of sensitivity analysis for the maximum expected profit show that the probability of imported FRM having no food safety problems when the external environment has no food safety problems is the most important parameter, with the importers fulfilling their responsibility for FRM source quality control. Meanwhile, a responsible attitude toward handling a crisis will reduce losses, transform the crisis into an opportunity, and win the trust of consumers, thereby, fostering corporate sustainability. Sensitivity analysis identifies the significant parameters that influence suppliers’ maximum utility function, and provides a reference by which food-related companies may formulate sustainable business policies.

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Section: Food Supply Chain Management (Fscm) and Optimal Order Quantitymentioning

confidence: 99%

Risk Management for the Optimal Order Quantity by Risk-Averse Suppliers of Food Raw Materials

Lin

Hsu

2018

IJFS

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“…Two warehouse inventory model for deteriorating items were developed by Malik, Singh, and Gupta (2012). A policy of Markovian demand for two types of customers was analysed by Karthick, Sivakumar, and Arivarignan (2015), while Chang, Cheng, and Soong (2015) were able CONTACT Sujit Kumar De mcm.principal@gmail.com; skdemamo.com@gmail.com to develop a trade credit model of imperfect quality as well.…”

Section: Introductionmentioning

confidence: 99%

A deteriorating EOQ model for natural idle time and imprecise demand: hesitant fuzzy approach

Karmakar

Goswami

2015

International Journal of Systems Science: Operations & Logi

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This paper deals with managerial decision-making for a deteriorating economic order quantity (EOQ) inventory model for natural idle time and imprecise demand under hesitant fuzzy environment. Also, the unavoidable situations like deterioration of the items and impreciseness of the demand rate are considered. However, the inventory processing time itself splits into a specific emergent natural idle time, a finite opening time and closing time as well. Again to select the best alternative, a decision-maker will have to think of different attributes of a particular commodity for which all parameters differ anonymously. In fuzzy environment, several articles are available in the literature but the inclusion of hesitant fuzzy set in inventory management problem is quite new. Here we have developed a hesitant fuzzy decision matrix first, and then some aggregation operators like hesitant fuzzy weighted geometric (HFWG), hesitant fuzzy geometric (HFG), hesitant fuzzy Einstein weighted geometric (HFEWG) and hesitant fuzzy Einstein ordered weighted geometric (HFEOWG) have been used to derive the score values of each alternative and rank them. Finally, the decision is compared with that of fuzzy optimal solutions and ends with a conclusion keeping some scope of future works.

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“…Alamri et al [21] evaluated the impact of learning on the inventory model with imperfect items. Chang et al [22] developed an extension to the inventory model with imperfect items considering permissible delays in payments and inspection errors. Rezaei [23] proposed using sample inspection instead of full inspection in inventory models with imperfect items.…”

Section: Introductionmentioning

confidence: 99%

Optimal Lot Size in a Manufacturing System with Imperfect Raw Materials and Defective Finished Products

Mokhtari

2018

Scientia Iranica

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In real-world manufacturing systems, it is inevitable to encounter imperfect raw materials and generate defective nished products. In order to cope with these practical problems, this paper studies a manufacturer that orders raw materials from an external source (supplier) and, then, produces a nished product. The raw materials contain imperfect quality items; in addition, the production system is defective. The imperfect raw materials are sold after the screening process, while the defective nished products go under a further rework process. It is also assumed that the defective rate of a machine is a random variable, resulting in three possible cases regarding the occurrence of backordering shortage. The aim is to determine economic order/production lot sizes for each case in such a way that the total cost of the system is minimized. The optimal closed-form solution is derived for each case separately. Moreover, the applicability of the proposed manufacturing model is illustrated via a numerical example.

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Impacts of inspection errors and trade credits on the economic order quantity model for items with imperfect quality

Cited by 15 publications

References 47 publications

Risk Management for the Optimal Order Quantity by Risk-Averse Suppliers of Food Raw Materials

Risk Management for the Optimal Order Quantity by Risk-Averse Suppliers of Food Raw Materials

A deteriorating EOQ model for natural idle time and imprecise demand: hesitant fuzzy approach

Optimal Lot Size in a Manufacturing System with Imperfect Raw Materials and Defective Finished Products

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