Integrated supply chain inventory model with quality improvement involving controllable lead time and backorder price discount

Abstract

For the past four decades the integrated vendor and buyer supply chain inventory model has been an interesting topic, but quality improvement of defective items in the integrated inventory model with backorder price discount involving controllable lead time has been rarely discussed. The aim of this paper is to minimize the total related cost in the continuous review model by considering the order quantity, reorder point, lead time, process quality, backorder price discount and number of shipment as decision variables. Moreover, we assume that an investment function is used to improve the process quality. The lead time demand follows a normal distribution. In addition, the buyer offers backorder price discount to motivate the customers for possible backorders. There are some defective items in the arrival lot, so its treatment is also taken in account in this paper. We develop an iterative procedure for finding the optimal values of decision variables and numerical example is presented to illustrate the solution procedure. Additionally, sensitivity analysis with respect to major parameters is also carried out.

Novel Solution Method for Inventory Models with Stochastic Demand and Defective Units

“…ere are thirty-five papers that had cited Wu and Ouyang [21] in their references. We list them in the following: Mostard et al [22], Wu et al [5], Ho [23], Annadurai and Uthayakumar [24], Tung et al [25], Çapar et al [26], Drezner et al [27], Lin et al [28], Wang [29], Zheng and Liu [30], Gholami-Qadikolaei et al [31], Ma and Qiu [32], Ouyang et al [33], Lin [34][35][36][37], Parvathi et al [37], Lin [38], Jindal and Solanki [39], Lin [40], Lin et al [41], Vishkaei et al [42], Wang et al [43], Madhusoodhanan et al [44,45], Chang et al [46], Jindal and Solanki [47], Madhusoodhanan et al [48], Chang et al [49], Sarkar and Mahapatra [50], Chuang et al [51], Hu et al [52], Maleki Vishkaei et al [53], Noh et al [54], and Singha et al [55]. Most of them only mentioned Wu and Ouyang [21] in their introduction but did not offer further study for Wu and Ouyang [21].…”

Estimating travel times in dual shuttle AS/RSs.: A revised approach

“…Optimal design and operations scheduling affect the performance of such systems (Cinar et al, 2017). As a matter of fact, good allocation and delivery times are important variables in warehouse management (Ma et al, 2015) in order to timely meet customer requirements in today's volatile markets (Jindal & Solanki, 2016;Rabbani et al, 2016).…”

Mathematical modelling for a fabrication–inventory problem with scrap, an acceptable stock-out level, stochastic failures and a multi-shipment policy

“…Real-world data were also used and compiled to test and demonstrate the performance of their approaches. Additional works that focused on diverse aspects of integrated fabrication-delivery systems have also been conducted elsewhere (Balaji et al, 2016;Caiazza et al, 2016;Chiu et al, 2016;Florea Ionescu et al, 2016;Jindal & Solanki, 2016;Mi cieta et al, 2016;Raj & Prabha, 2016;Razmi et al, 2016;Afshar-Nadjafi & Afshar-Nadjafi, 2017;Gopinath et al, 2017;Settanni et al, 2017).…”