Optimal lot sizing in screening processes with returnable defective items

Vishkaei, Behzad Maleki; Niaki, Seyed Taghi Akhavan; Farhangi, Milad; Rashti, Mehdi Ebrahimnezhad Moghadam

doi:10.1007/s40092-014-0070-x

Cited by 11 publications

(9 citation statements)

References 30 publications

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“…The inspection process provides a solution by separating the products and ensuring that only the perfect products will reach the customers. Some models assumed that the retailers return the defective products to the supplier [16,17] or sell them instantaneously at a discounted price [18][19][20]. These assumptions neglect the holding cost of the defective products.…”

Section: Inventory Model With Defective and Deteriorating Productsmentioning

confidence: 99%

A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions

et al. 2020

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Maintaining product quality and environmental performance are emerging concerns in modern competitive and transparent businesses. Many retailers separate perfect products from imperfect ones to ensure product quality and endeavor to achieve carbon dioxide (CO2) reduction through green technology investments and sustainable inventory planning. Product deterioration often badly hampers the retailing business; hence, suitable preservation technologies are used. In this study, we examined the optimization model of the selling price, investment, and replenishment planning to maximize the total profit. The proposed model considered the effect of a greater deterioration rate and discount price of imperfect products. Due to the high uncertainty in demand, a realistic holding cost was deliberated with a variable and constant part. Every time the retailer transports purchased items, greenhouse gases (GHGs), including CO2, are produced. Government regulations on CO2 minimization and customer awareness for greener products stimulate retailers to invest in energy-efficient green technology. This study simultaneously showed a harmonious relationship among the attributes of preservation technology, green technology investment, and discounts on defective items. Theoretical derivations were performed with numerical analysis.

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Section: Inventory Model With Defective and Deteriorating Productsmentioning

confidence: 99%

A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions

et al. 2020

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“…They provided replacement by repairing or purchasingfrom a local supplier. Besides, Vishkaei et al [16] presented an inventory model that stores imperfect items after the inspection until the end of the cycle and then returnsthem to the supplier. Mezei and Björk [17] examined the impact of backorders on a fuzzy economic production quantity model.Farhangi et al [18] developed an economic order quantity model with imperfect quality items where all of imperfect items are exchangeable under completely backorder.Zhou et al [19] studied an inventory model with imperfect production process where the manufacture faces a one-time-only discount.In addition, Hsu & Hsu [20] suggested an economic production quantity model, in which the shortage is completely backorder, defective items can be sold as discounted items at three time periods: (i)immediately after inspection, (ii) at the end of the production process, and (iii) at the end of the cycle.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Order Quantity for Imperfect Quality Items Under Inspection Errors, Batch Replacement and Multiple Sales of Returned Items

Mokhtari

Asadkhani

2019

Scientia Iranica

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In classical inventory control problems, it is usually assumed that all of the items are of perfect quality, and the inspection process works perfectly well. However, in practice, the order lotsoften contain imperfect items, and the inspection process, is not necessarily error-free. In this article, we extendthe economic order quantity model under imperfect items where the inspection process involves type I and II errors. The type I error can lead to recognition of perfect items as defective, while the type II error can result in the delivery of imperfect items to customers. In the proposed inventory problem, the customers who receive and return imperfect items wait for replacement with perfect items as a batch at the end of a special inspection process. Besides, the imperfect quality items are sold out as discounted items. Our problem considers more than one sales per cycle for returned items from 2 market which causes a reduction for the inventory costs. We present two cases depending on the length of special inspection process. A numerical example is provided to compare two cases, and a sensitivity analysis is discussedto assess the effect of main parameters on the total profit.

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“…The results show that the relationship between the cost function and the production time can have a signification effect on the economical production quantity and the average amount of the total cost in EPQ classic model. Vishkaei et al (2014) extended Hsu and Hsu (2012) aiming to determine the optimal order quantity of product batches that contain defective items with percentage nonconforming following a known probability density function. The orders are subject to 100 % screening process at a rate higher than the demand rate.…”

Section: Literature Reviewmentioning

confidence: 99%

Developing EPQ models for non-instantaneous deteriorating items

Ghasemi

2015

J Ind Eng Int

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In this paper, the classical economic production quantity (EPQ) model is developed for non-instantaneous deteriorating items by considering a relationship between the holding cost and the ordering cycle length. Two models are developed. First, the proposed model is considered when backorders are not permitted and this condition is waived for the second case. The cost functions associated with these models are proved to be convex and an algorithm is designed to find the optimum solutions of the proposed model. Results show that the relationship between holding cost and ordering cycle length has a significant impact on the optimal lot size and total cost in the EPQ model. Numerical examples are presented to demonstrate the utility of the models.

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Optimal lot sizing in screening processes with returnable defective items

Cited by 11 publications

References 30 publications

A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions

A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions

Economic Order Quantity for Imperfect Quality Items Under Inspection Errors, Batch Replacement and Multiple Sales of Returned Items

Developing EPQ models for non-instantaneous deteriorating items

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