Economic order quantity model for growing items with imperfect quality

Sebatjane, Makoena; Adetunji, Olufemi

doi:10.1016/j.orp.2018.11.004

Cited by 46 publications

(52 citation statements)

References 23 publications

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“…Building upon Rezaei (2014) 's economic order quantity (EOQ) model for growing items, Sebatjane and Adetunji (2019a) developed an extension which incorporated imperfect quality. This extension captures some aspects of realistic food production systems, particularly item growth and the presence of items that are of inferior quality.…”

Section: Contextmentioning

confidence: 99%

“…To overcome some of the shortcomings in Sebatjane and Adetunji (2019a) 's model, an integrated multi-echelon supply chain is suggested. The proposed supply chain consists of three members (i.e.…”

Section: Contextmentioning

confidence: 99%

“…Nobil et al (2019) proposed an inventory control model for growing items for a situation with permissible shortages that are fully backordered. Sebatjane and Adetunji (2019a) extended the model to a case where a percentage of the slaughtered inventory is of poorer quality. Khalilpourazari and Pasandideh (2019) studied a multi-item inventory control system for growing items taking in to account budget and warehouse capacity constraints.…”

Section: Growing Inventory Itemsmentioning

confidence: 99%

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Optimal inventory replenishment and shipment policies in a four-echelon supply chain for growing items with imperfect quality

Sebatjane

Adetunji

2020

Production & Manufacturing Research

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Quality control is an important consideration in food production systems which often start with farming and processing operations and finish with consumption. This study develops an integrated inventory control model for a four-echelon supply chain (with farming, processing, screening and retail operations). The farmer grows newborn items and then delivers them to a processor once the items are mature enough. At the processing plant, the items are slaughtered, processed, packaged and screened for quality. The processor then delivers a certain number of equally sized batches of good quality processed inventory to the retailer who satisfies customer demand for good quality processed inventory. The processor sells the processed poorer quality inventory at a discounted price and as a single batch to secondary markets. The proposed supply chain inventory system is formulated as a profit maximisation problem with the number of batches of good quality processed inventory and the order quantity as the decision variables.

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Section: Contextmentioning

confidence: 99%

Section: Contextmentioning

confidence: 99%

Section: Growing Inventory Itemsmentioning

confidence: 99%

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Optimal inventory replenishment and shipment policies in a four-echelon supply chain for growing items with imperfect quality

Sebatjane

Adetunji

2020

Production & Manufacturing Research

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“…Firstly, in the former, shortages are allowed and fully backordered, and secondly, the growth function of the items was approximated by a linear function in former model as opposed to using Richards (1959)'s growth curve as was the case in the latter. Sebatjane and Adetunji (2018) extended Rezaei (2014)'s model by incorporating item quality. Their model was formulated under the assumption that a certain proportion of the ordered growing items is of inferior quality.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic order quantity model for growing items with incremental quantity discounts

Sebatjane

Adetunji

2019

J Ind Eng Int

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Certain inventory items are living organisms, for example livestock, and are therefore capable of growing during the replenishment cycle. These items often serve as various saleable food items downstream in supply chains. The purpose of this paper is to develop a lot sizing model for growing items if the supplier of the items offers incremental quantity discounts. A mathematical model is derived to determine the optimal inventory policy which minimises the total inventory cost in both the owned and rented facilities. A solution procedure for solving the model is developed and illustrated through a numerical example. Sensitivity analysis is performed to demonstrate the response of the order quantity and total costs to some key input parameters. Incremental quantity discounts result in reduced purchasing costs; however, ordering very large quantities has downsides as well. The biggest downsides include the increased holding costs, the risks of running out of storage capacity and item deterioration since the cycle time increases if larger quantities are purchased. Owing to the importance of growing items in the food supply chains, the model presented in this article can be used by procurement and inventory mangers when making purchasing decisions.

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“…Kazemi et al [36] incorporated the carbon emissions on an EOQ inventory model with imperfect articles. Sebatjane and Adetunji [37] integrated the concept of imperfect quality into an EOQ inventory model for growing items. This inventory model contemplates three different growth functions: linear, split and linear, and logistic.…”

Section: Introductionmentioning

confidence: 99%

An Inventory Model for Imperfect Quality Products with Rework, Distinct Holding Costs, and Nonlinear Demand Dependent on Price

et al. 2021

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Traditionally, the inventory models available in the literature assume that all articles in the purchased lot are perfect and the demand is constant. However, there are many causes that provoke the presence of defective goods and the demand is dependent on some factors. In this direction, this paper develops an economic order quantity (EOQ) inventory model for imperfect and perfect quality items, taking into account that the imperfect ones are sent as a single lot to a repair shop for reworking. After reparation, the items return to the inventory system and are inspected again. Depending on the moment at which the reworked lot arrives to the inventory system, two scenarios can occur: Case 1: The reworked lot enters when there still exists inventory; and Case 2: The reworked lot comes into when the inventory level is zero. Furthermore, it is considered that the holding costs of perfect and imperfect items are distinct. The demand of the products is nonlinear and dependent on price, which follows a polynomial function. The main goal is to optimize jointly the lot size and the selling price such that the expected total profit per unit of time is maximized. Some theoretic results are derived and algorithms are developed for determining the optimal solution for each modeled case. It is worth mentioning that the proposed inventory model is a general model due to the fact that this contains some published inventory models as particular cases. With the aim to illustrate the use of the proposed inventory model, some numerical examples are solved.

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Economic order quantity model for growing items with imperfect quality

Cited by 46 publications

References 23 publications

Optimal inventory replenishment and shipment policies in a four-echelon supply chain for growing items with imperfect quality

Optimal inventory replenishment and shipment policies in a four-echelon supply chain for growing items with imperfect quality

Economic order quantity model for growing items with incremental quantity discounts

An Inventory Model for Imperfect Quality Products with Rework, Distinct Holding Costs, and Nonlinear Demand Dependent on Price

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