Effect of deterioration on the instantaneous replenishment model with imperfect quality items

Moussawi-Haidar, Lama; Salameh, Moueen K.; Nasr, Walid W.

doi:10.1016/j.apm.2014.05.003

Cited by 38 publications

(14 citation statements)

References 38 publications

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“…Rad et al [19] propose an EOQ inventory model that combines operations and pricing decisions in a two-stage supply chain when the demand rate is dependent on the price, and shortage is permitted. Moussawi-Haidar et al [12] investigate the effect of deterioration on the instantaneous replenishment. Skouri et al [26] propose an inventory system with allowed shortages.…”

Section: Introductionmentioning

confidence: 99%

Replenishment of imperfect items in an EOQ inventory model with partial backordering

2020

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This paper deals with an inventory model in which a percent of the items in the lot is imperfect. The supplier is far from the buyer. After the reception of the order, immediately the products are inspected and imperfect items are identified. Due to the fact that supplier is located at long distance and the demand is needed to cover, the imperfect items are replenished by perfect ones from a local supplier at higher cost. In addition, the imperfect items are withdrawn and sold at a salvaged price as second-degree items. The shortage is allowed and partially backordered. The following three cases are considered: Case I. The reordered items are received when inventory level is zero; Case II. The reordered items are received when the backordered quantity is equal to the imperfect items quantity; and Case III. The reordered items are received when shortage is still remained. These cases are studied and analyzed in detail. In each case, the aim is to obtain the optimal value of the length period and the percent of period duration in which the inventory level is positive. A numerical example is presented to show the applicability of proposed inventory model. The results show that Case I has the lowest holding and shortage cost, so the total benefit is higher than the other two cases.Mathematics Subject Classification. 90B05, 90C30.

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Section: Introductionmentioning

confidence: 99%

Replenishment of imperfect items in an EOQ inventory model with partial backordering

2020

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“…Based on the learning curve theory, Konstantaras et al [14] investigated an allowable shortage EOQ model for the cases of infinite and finite planning horizons when the fraction of defective items can be reduced by learning; Alamri et al [15] established a general EOQ model for imperfect quality items by assuming that demand, screening, and deterioration rates were all arbitrary functions of time. Moussawi-Haidar et al [16] developed two modified EOQ-type models for deteriorating items when the proportion of defective items follows a known distribution. They first assumed that no shortages are allowed, that is, the inventory level is just enough to cover the demand during the screening period, and then relaxed the assumption and allowed for backordering.…”

Section: Introductionmentioning

confidence: 99%

Optimal Buyer’s Replenishment Policy in the Integrated Inventory Model for Imperfect Items

Yueli¹,

Jiangtao²,

Wei³

2016

Mathematical Problems in Engineering

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In the classical economic order quantity (EOQ) models, a common unrealistic assumption is that all the items received are of good quality. However, in realistic environment, a received shipment usually contains a fraction of imperfect quality items. These imperfect items may be scrapped, reworked at a cost, or salvaged at a discounted price. While the percentage of imperfect items is random, the optimal ordering cycle is rarely considered in current literatures. This paper revisits the model (Maddah and Jaber, 2008) and extends it by assuming that the ordering cycle is determined by the demand rate, delivery quantity per shipment, and the mathematical expectation of the defective rate. The possibility of stockout or residue in the end of a cycle will be considered, and the loss of stockout and the salvage of the residue are counted into the cost. Besides, we consider consolidating the shipments of imperfect items over multiple deliveries. Thus, an integrated vendor-buyer inventory model for imperfect quality items with equal-size shipment policy is established to derive the optimal ordering cycle, ordering quantity, and number of deliveries. The computational method of the optimal delivery quantity per shipment and number of deliveries is given through theoretical results. Finally, sensitivity of main parameters is analyzed through simulation experiments and shown by some figures.

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“…Tayyab and Sarkar [28] revisited an EPQ model with an imperfect multi-stage production system by considering a random defective rate. Related articles include studies by Khan et al [29], Sarkar [30], Hsu and Hsu [31], Hsu et al [32], Yu and Lin [33], Moussawi-Haidar et al [34], and their references. Most of these studies have examined how defective products a ect optimal production and ordering strategies.…”

Section: Introductionmentioning

confidence: 99%

Optimal Production and Ordering Strategies with Defective Items and Allowable Shortage under Two-part Trade Credit

2018

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Abstract. This study investigated a production-inventory model with defective items under a two-part trade credit, where the agreement of conditionally freight concession is considered in an integrated supply chain. It is assumed here that the retailer conducts the inspection process before selling incoming items. All the defective items are discovered, stored, and sold as a single batch to a secondary market at a decreased price. Furthermore, shortages are allowed and completely backlogged for the retailer. The purpose of this study is to determine the optimal number of shipments per production cycle for the supplier and the optimal length of time when there is no inventory shortage and replenishment cycle for the retailer, such that the total pro t function has a maximum value. In theoretical analysis, the existence and uniqueness of the optimal solutions are shown, and an algorithm is developed to nd the optimal solutions. Furthermore, numerical examples are presented to demonstrate the solution procedures, and a sensitivity analysis of the optimal solutions regarding all parameters is also carried out.

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Effect of deterioration on the instantaneous replenishment model with imperfect quality items

Cited by 38 publications

References 38 publications

Replenishment of imperfect items in an EOQ inventory model with partial backordering

Replenishment of imperfect items in an EOQ inventory model with partial backordering

Optimal Buyer’s Replenishment Policy in the Integrated Inventory Model for Imperfect Items

Optimal Production and Ordering Strategies with Defective Items and Allowable Shortage under Two-part Trade Credit

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