Supplier-retailer production and inventory models with defective items and inspection errors in non-cooperative and cooperative environments

2018 ◽  
Vol 52 (2) ◽  
pp. 453-471 ◽  
Author(s):  
Chih-Te Yang ◽  
Chia-Huei Ho ◽  
Hsiu-Mei Lee ◽  
Liang-Yuh Ouyang

This paper proposes single-supplier single-retailer production and inventory models for maximizing the supplier and retailer’s profits in non-cooperative and cooperative environments. The effect of defective items and inspection errors are considered in the proposed models. In addition, we consider that the supplier offers the retailer a quantity threshold to absorb transportation costs for promoting the economies of scale of transport. Mathematical analyses are conducted, and optimal equilibrium production and replenishment strategies for the supplier and retailer are derived under non-cooperative and cooperative situations. Subsequently, we establish two algorithms to explain the optimal equilibrium solutions for these cases. Finally, several numerical examples and a sensitivity analysis with respect to major parameters are presented to demonstrate the theoretical results, compare the distinct solutions, and derive managerial insights.

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Lianxia Zhao

This paper studies an inventory model for Weibull-distributed deterioration items with trapezoidal type demand rate, in which shortages are allowed and partially backlogging depends on the waiting time for the next replenishment. The inventory models starting with no shortage is are to be discussed, and an optimal inventory replenishment policy of the model is proposed. Finally, numerical examples are provided to illustrate the theoretical results, and a sensitivity analysis of the major parameters with respect to the optimal solution is also carried out.


Mathematics ◽  
2020 ◽  
Vol 8 (6) ◽  
pp. 1038
Author(s):  
Han-Wen Tuan ◽  
Gino K. Yang ◽  
Kuo-Chen Hung

Inventory models must consider the probability of sub-optimal manufacturing and careless shipping to prevent the delivery of defective products to retailers. Retailers seeking to preserve a reputation of quality must also perform inspections of all items prior to sale. Inventory models that include sub-lot sampling inspections provide reasonable conditions by which to establish a lower bound and a pair of upper bounds in terms of order quantity. This should make it possible to determine the conditions of an optimal solution, which includes a unique interior solution to the problem of an order quantity satisfying the first partial derivative. The approach proposed in this paper can be used to solve the boundary. These study findings provide the analytical foundation for an inventory model that accounts for defective items and sub-lot sampling inspections. The numerical examples presented in a previous paper are used to demonstrate the derivation of an optimal solution. A counter-example is constructed to illustrate how existing iterative methods do not necessarily converge to the optimal solution.


2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Karuppuchamy Annadurai ◽  
Ramasamy Uthayakumar

In the real market, as unsatisfied demands occur, the longer the length of lead time is, the smaller the proportion of backorder would be. In order to make up for the inconvenience and even the losses of royal and patient customers, the supplier may offer a backorder price discount to secure orders during the shortage period. Also, ordering policies determined by conventional inventory models may be inappropriate for the situation in which an arrival lot contains some defective items. To compensate for the inconvenience of backordering and to secure orders, the supplier may offer a price discount on the stockout item. The purpose of this study is to explore a coordinated inventory model including defective arrivals by allowing the backorder price discount and ordering cost as decision variables. There are two inventory models proposed in this paper, one with normally distributed demand and another with distribution free demand. A computer code using the software Matlab 7.0 is developed to find the optimal solution and present numerical examples to illustrate the models. The results in the numerical examples indicate that the savings of the total cost are realized through ordering cost reduction and backorder price discount.


2019 ◽  
Vol 4 (2) ◽  
pp. 349 ◽  
Author(s):  
Oluwatayo Michael Ogunmiloro ◽  
Fatima Ohunene Abedo ◽  
Hammed Kareem

In this article, a Susceptible – Vaccinated – Infected – Recovered (SVIR) model is formulated and analysed using comprehensive mathematical techniques. The vaccination class is primarily considered as means of controlling the disease spread. The basic reproduction number (Ro) of the model is obtained, where it was shown that if Ro<1, at the model equilibrium solutions when infection is present and absent, the infection- free equilibrium is both locally and globally asymptotically stable. Also, if Ro>1, the endemic equilibrium solution is locally asymptotically stable. Furthermore, the analytical solution of the model was carried out using the Differential Transform Method (DTM) and Runge - Kutta fourth-order method. Numerical simulations were carried out to validate the theoretical results. 


2021 ◽  
Vol 47 (1) ◽  
Author(s):  
Kevin Schober ◽  
Jürgen Prestin ◽  
Serhii A. Stasyuk

AbstractIn this paper, we show that certain trigonometric polynomial shearlets which are special cases of directional de la Vallée Poussin-type wavelets are able to detect step discontinuities along boundary curves of periodic characteristic functions. Motivated by recent results for discrete shearlets in two dimensions, we provide lower and upper estimates for the magnitude of the corresponding inner products. In the proof, we use localization properties of trigonometric polynomial shearlets in the time and frequency domain and, among other things, bounds for certain Fresnel integrals. Moreover, we give numerical examples which underline the theoretical results.


2014 ◽  
Vol 2014 ◽  
pp. 1-8
Author(s):  
Xuling Wang ◽  
Xiaodi Li ◽  
Gani Tr. Stamov

This paper studies impulsive control systems with finite and infinite delays. Several stability criteria are established by employing the largest and smallest eigenvalue of matrix. Our sufficient conditions are less restrictive than the ones in the earlier literature. Moreover, it is shown that by using impulsive control, the delay systems can be stabilized even if it contains no stable matrix. Finally, some numerical examples are discussed to illustrate the theoretical results.


2016 ◽  
Vol 26 (2) ◽  
pp. 219-240
Author(s):  
Wen Lin ◽  
Horng Chang

In this article, we study inventory models to determine the optimal special order and maximum saving cost of imperfective items when the supplier offers a temporary discount. The received items are not all perfect and the defectives can be screened out by the end of 100% screening process. Three models are considered according to the special order occurs at regular replenishment time, non-regular replenishment time, and screening time of economic order quantity cycle. Each model has two sub-cases to be discussed. In temporary discount problems, in general, there are integer operators in objective functions. We suggest theorems to find the closed-form solutions to these kinds of problems. Furthermore, numerical examples and sensitivity analysis are given to illustrate the results of the proposed properties and theorems.


2021 ◽  
Author(s):  
Mehmood Khan

A common measure of quality for a buyer or a vendor is the defect rate. Defects may represent an attribute, a dimension or a quantity. They may be classified as product quality defects or process quality defects. Product quality defects may be caused by human error which can de due to fatigue, lack of proper training, or other reasons. For example, an inspector may misclassify a defective fuel tank of a car as good. On the other hand, process quality defects maybe caused by a machine going out-of-control. While many researchers assume that the screening processes which separate the defective items are error-free, it would be realistic to consider misclassification errors in this process. Beside inspection errors, learning is another human factor that brings in enhancement in the overall performance of a supply chain. Learning is inherent when there are workers involved in a repetitive type of production process. Learning and forgetting are even more important in manufacturing environments that emphasize on flexibility where workers are cross-trained to do different tasks and where products have a short life cycle. Inventory management with learning in quality, inspection and processing time will be the focus of this thesis. A number of models will be developed for a buyer and/or a two level supply chain to incorporate these human factors. The key findings of this work may be summarized as 1. Inspection errors significantly affect the annual profit. 2. An increase in the unit screening cost reduces the annual profit to a great extent at slower rates of learning. 3. For the two-level supply chain we investigated, learning in production drops the annual cost significantly while the learning in supplier's quality results in a situation where there are no defectives from the suppliers. 4. Type II error may seem to be beneficial for a two level supply chain as the order/lot size goes down and thus affects the costs of ordering, production and screening. 5. Consignment stocking policy performs better than conventional stocking when holding costs go higher than a threshold value.


2020 ◽  
Vol 38 (2) ◽  
pp. 133-163
Author(s):  
Cristhian Montoya ◽  
Jhoana P. Romero Leiton

In this work, two mathematical models for malaria under resistance are presented. More precisely, the first model shows the interaction between humans and mosquitoes inside a patch under infection of malaria when the human population is resistant to antimalarial drug and mosquitoes population is resistant to insecticides. For the second model, human–mosquitoes population movements in two patches is analyzed under the same malaria transmission dynamic established in a patch. For a single patch, existence and stability conditions for the equilibrium solutions in terms of the local basic reproductive number are developed. These results reveal the existence of a forward bifurcation and the global stability of disease–free equilibrium. In the case of two patches, a theoretical and numerical framework on sensitivity analysis of parameters is presented. After that, the use of antimalarial drugs and insecticides are incorporated as control strategies and an optimal control problem is formulated. Numerical experiments are carried out in both models to show the feasibility of our theoretical results.


Author(s):  
Aditi Khanna ◽  
Aakanksha Kishore ◽  
Chandra K. Jaggi

In real life, due to certain machine problems, process deterioration and many other factors, production processes deliver imperfect quality items. So, the effect of these defectives cannot be ignored in terms of ensuring good customer service. In order to sustain today’s cut-throat competition, rework process of defective items becomes a rescue to compensate for the imperfections present in the production system. The present model attempts to explore the traditional imperfect environment with a more practical approach by incorporating the concept of inspection errors, along with an imperfect rework process. By considering human errors as unavoidable, Type-I and Type-II errors are also incorporated in the study. To prioritize on the customer satisfaction level, Sales returns are given full price refunds. An analytical method is employed to maximize the expected total profit per unit time to study the combined effect of aforementioned factors on the optimal production quantity. A numerical example along with a comprehensive sensitivity analysis has been presented to demonstrate the applicability of the model and also to observe the effects of key parameters on the optimal production policy respectively. The pertinence of the model can be found in most manufacturing industries like textile, electronics, furniture, footwear, crockery etc.


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