An improved way to calculate imperfect items during long-run production in an integrated inventory model with backorders

Kim, Min Soo; Kim, Jong Soo; Sarkar, Biswajit; Sarkar, Mitali; Iqbal, Muhammad Waqas

doi:10.1016/j.jmsy.2018.04.016

Cited by 50 publications

(25 citation statements)

References 28 publications

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“…A just-in-time production process for an integrated model was developed by Das Roy et al [40]. Recently, Kim et al [41] proposed an integrated model with backorders, where they used an improved technique to calculate imperfect items when a process has gone through a long-run process.…”

Section: Introductionmentioning

confidence: 99%

A Two-Echelon Supply Chain Management With Setup Time and Cost Reduction, Quality Improvement and Variable Production Rate

2019

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This model investigates the variable production cost for a production house; under a two-echelon supply chain management where a single vendor and multi-retailers are involved. This production system goes through a long run system and generates an out-of-control state due to different issues and produces defective items. This model considers the reduction of the defective rate and setup cost through investment. A discrete investment for setup cost reduction and a continuous investment is considered to reduce the defective rate and to increase the quality of products. Setup and processing time are dependent on lead time in this model. The model is solved analytically to find the optimal values of the production rate, safety factors, optimum quantity, lead time length, investment for setup cost reduction, and the probability of the production process going out-of-control. An efficient algorithm is constructed to find the optimal solution numerically and sensitivity analysis is given to show the impact of different parameters. A case study and different cases are also given to validate the model.

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Section: Introductionmentioning

confidence: 99%

A Two-Echelon Supply Chain Management With Setup Time and Cost Reduction, Quality Improvement and Variable Production Rate

2019

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“…Recently, Sharma [34] conducted a survey on inventory models with inflation and Sarkar [31] introduced a three-stage inspection with some shelf-life products. Kim et al [15] developed a production model under a random controllable lead time.…”

Section: Inflation Imperfect Quality Items Inspection Plansmentioning

confidence: 99%

Inventory and pricing decisions for imperfect quality items with inspection errors, sales returns, and partial backorders under inflation

et al. 2020

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In this paper, an optimal replenishment inventory policy for imperfect quality items is presented with a selling price-dependent demand under inflationary conditions using a discounted cash flow (DCF) approach. Due to the presence of defectives in the system, all items go through a 100% inspection process. However, the screening process is also considered to be imperfect and involves errors, namely Type-I and Type-II. In addition, shortages are allowed and are partially backlogged. An optimal solution for the proposed model is derived by maximizing the expected profit function by jointly optimizing three decision variables: selling price, order quantity, and backorder level. To validate the theoretical results, a numerical example along with comprehensive sensitivity analysis is offered. The model has pertinence in industries like

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“…An improved way to calculate imperfect items is given by Kim et al [56], and Sett et al [57] determined optimal buffer inventory in imperfect production system. Sarkar et al [58] studied warranty, optimal run time with inspection errors in the imperfect production system, and Kang et al [59] discussed optimal ordering policies for the imperfect production system.…”

Section: Literature Reviewmentioning

confidence: 99%

Joint Inventory and Pricing Policy for an Online to Offline Closed-Loop Supply Chain Model with Random Defective Rate and Returnable Transport Items

2019

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Environmental deterioration is one of the current hot topics of the business world. To cope with the negative environmental impacts of corporate activities, researchers introduced the concept of closed-loop supply chain (CLSC) management and remanufacturing. This paper studies joint inventory and pricing decisions in a multi-echelon CLSC model that considers online to offline (O2O) business strategy. An imperfect production process is examined with a random defective rate that follows a probability distribution. The results show that the O2O channel increases the profit of the system. For the defective rate, three different distributions are considered and three examples are solved. The results of the three examples conclude that the highest profit is generated when the defective rate follows a uniform distribution. Furthermore, based on the salvage value of defective items, two cases were studied. Results and sensitivity analysis show that the increase in defective rate does not reduce total profit in every situation, as perceived by the existing literature. Sensitivity analysis and numerical examples are given to show robustness of the model and draw important managerial insights.

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An improved way to calculate imperfect items during long-run production in an integrated inventory model with backorders

Cited by 50 publications

References 28 publications

A Two-Echelon Supply Chain Management With Setup Time and Cost Reduction, Quality Improvement and Variable Production Rate

A Two-Echelon Supply Chain Management With Setup Time and Cost Reduction, Quality Improvement and Variable Production Rate

Inventory and pricing decisions for imperfect quality items with inspection errors, sales returns, and partial backorders under inflation

Joint Inventory and Pricing Policy for an Online to Offline Closed-Loop Supply Chain Model with Random Defective Rate and Returnable Transport Items

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