A supply chain inventory model for vendor-buyer system with defective items and imperfect inspection process

2017 ◽  
Vol 11 (4) ◽  
pp. 450
Author(s):  
Wakhid Ahmad Jauhari ◽  
Imanuel Prasetyo Widianto ◽  
Cucuk Nur Rosyidi
Keyword(s):  
Supply Chain ◽  
Inventory Model ◽  
Defective Items ◽  
Inspection Process

scholarly journals A single-manufacturer multi-retailer integrated inventory model for items with imperfect quality, price sensitive demand and planned back orders

2021 ◽  
Author(s):  
Dipak Barman ◽  
Gour Chandra Mahata
Keyword(s):  
Supply Chain ◽  
Closed Form Solution ◽  
Form Solution ◽  
Inventory Model ◽  
Model Parameters ◽  
Selling Price ◽  
Defective Items ◽  
Imperfect Quality ◽  
Inspection Process ◽  
Order Quantities

In this paper, we develop an integrated two-echelon supply chain inventory model with a single-manufacturer and multi-retailers in which each retailer’s demand is dependent on selling price of the product. The manufacturer produces a single product and dispatched the order quantities of the retailers in some equal batches. The production process is imperfect and produces imperfect quality of products with a defective percentage which is random in nature and follows binomial distribution. Inspection process is performed by the retailers to classify the defective items in each lot delivered from the manufacturer. The defective items that were found by the retailer will be returned to the manufacturer at the next delivery. Lead time is random and it follows an exponential distribution. We also assume that shortages are allowed and are completely backlogged at each retailer’s end. A closed form solution to maximize the expected average profit for both the centralized and the decentralized scenarios are obtained. The developed models are illustrated with the help of some numerical examples using stochastic search genetic algorithm (GA). It is found that integration of the supply chain players results an impressive increment in the profit of the whole supply chain. Sensitivity analysis is also performed to explore the impacts of key-model parameters on the expected average profit of the supply chain.

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

2020 ◽  
Vol 5 (5) ◽  
pp. 869-885
Author(s):  
Aastha . ◽  
Sarla Pareek ◽  
Leopoldo Eduardo Cárdenas-Barrón ◽  
Mandeep Mittal
Keyword(s):  
Inventory Management ◽  
Storage Capacity ◽  
Inventory Model ◽  
Optimal Order ◽  
Defective Items ◽  
Imperfect Quality ◽  
Inspection Process ◽  
Total Profit ◽  
The Cost ◽  
The Impact

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.

scholarly journals An EPQ inventory model considering an imperfect production system with probabilistic demand and collaborative approach

2019 ◽  
Vol 17 (2) ◽  
pp. 282-304
Author(s):  
Katherinne Salas-Navarro ◽  
Jaime Acevedo-Chedid ◽  
Gina Mora Árquez ◽  
Whady F. Florez ◽  
Holman Ospina-Mateus ◽  
...  
Keyword(s):  
Supply Chain ◽  
Production System ◽  
Inventory Model ◽  
Collaborative Approach ◽  
Lot Size ◽  
Defective Items ◽  
Content Type ◽  
Imperfect Production ◽  
Imperfect Items ◽  
Exponential Probability

Purpose The purpose of this paper is to propose an economic production quantity (EPQ) inventory model considering imperfect items and probabilistic demand for a two-echelon supply chain. The production process is imperfect and the imperfect quality items are removed from the lot size. The demand rate of the inventory system is random and follows an exponential probability density function and the demand of the retailers is depending on the initiatives of the sales team. Design/methodology/approach Two approaches are examined. In the non-collaborative approach, any member of the supply chain can be the leader and takes decisions to optimize the profits, and in the collaborative system, all members make joint decisions about the production, supply, sales and inventory to optimize the profits of the supply chain members. The calculus approach is applied to find the maximum profit related to the members of the supply chain. Findings A numerical example is presented to illustrate the performance of the EPQ model. The results show that collaborative approach generates greater profits to the supply chain and the market’s demand represents the variable behavior and uncertainty that is generated in the replenishment of a supply chain. Originality/value The new and major contributions of this research are: the inventory model considers demand for products is random variable which follows an exponential probability distribution function and it also depends on the initiatives of sales teams, the imperfect production system generates defective items, different cycle time are considered in manufacturer and retailers and collaborative and non-collaborative approaches are also studied.

Ordering Policy for Imperfect-Quality Deteriorating Items with Initial-Inspection and Allowable Shortage under the Condition of Permissible Delay in Payments

2014 ◽  
pp. 65-80
Author(s):  
Chandra K. Jaggi ◽  
Mandeep Mittal
Keyword(s):  
Inventory Model ◽  
Inventory System ◽  
Deteriorating Items ◽  
Defective Items ◽  
Permissible Delay In Payments ◽  
Imperfect Quality ◽  
Ordering Policy ◽  
Inspection Process ◽  
Delay In Payments ◽  
The Impact

While developing the inventory model with shortages under permissible delay in payments, it has been observed in the literature that the researchers have not considered the fact that the retailer can earn interest on the revenue generated after fulfilling the outstanding demand as soon as he receives the new consignment at the start of the cycle. Owing to this fact, the present study investigates the impact of interest earned from revenue generated after fulfilling the stock out at the start of the cycle on a single commodity inventory model with shortages for deteriorating item, in which the whole lot goes through an inspection process on arrival before entering into inventory system, under the conditions of permissible delay in payments. After inspection, the non-defective items are retained to fulfill the demand and the defective items are returned to the supplier. The results have been demonstrated with the help of a numerical example using the tools of Matlab7.0.1.

scholarly journals Optimizing a Sustainable Supply Chain Inventory Model for Controllable Deterioration and Emission Rates in a Greenhouse Farm

Mathematics ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 495
Author(s):  
Umakanta Mishra ◽  
Abu Hashan Md Mashud ◽  
Ming-Lang Tseng ◽  
Jei-Zheng Wu
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Trade Credit ◽  
Numerical Study ◽  
Inventory Model ◽  
Green Technology ◽  
Solution Technique ◽  
Emission Rates ◽  
Sustainable Supply Chain ◽  
Green Technologies

This study investigated how greenhouse managers should invest in preservation and green technologies and introduce trade credit to increase their profits. We propose a supply chain inventory model with controllable deterioration and emission rates under payment schemes for shortage and surplus, where demand depends on price and trade credit. Carbon emissions and deterioration are factors affecting global warming, and many greenhouse managers have focused on reducing carbon emissions. Carbon caps and tax-based incentives have been used in many greenhouses to achieve such reduction. Because of the importance of reducing carbon emissions for developing a green supply chain, various studies have investigated how firms deal with carbon emission constraints. In this continuation, we have used green technology to curb the excessive emissions from the environment or make it clean from CO2. In a seller–buyer relationship, the seller can offer a trade credit period to the buyer to manage stock and stimulate demand. Deterioration may become a challenge for most firms as they are under time constraints control, and preservation technology could help. This study proposes three novel inventory strategies for a sustainable supply chain (full backorder, partial backorder, and no backorder), linking all these important issues. The solution optimizes total annual profit for inventory shortage or surplus. We conducted a numerical study with three examples to evaluate the model’s authenticity and effectiveness and demonstrate the solution technique. The deterioration and emission rates can be included in a trade credit policy to increase greenhouse profits. The results suggest that greenhouse managers could apply the proposed model to manage real-world situations.

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