Optimal Policy for a Simple Supply Chain System With Defective Items and Returned Cost Under Screening Errors

Lin, Tien-Yu

doi:10.15807/jorsj.52.307

Cited by 20 publications

(4 citation statements)

References 22 publications

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“…Its purpose was to determine the optimal number of shipments and the size of each shipment to minimize the combined annual cost incurred by the supplier and buyer. At the same time, a cost model was developed for the supply chain system and a solution was proposed to find the optimal strategic solution [5]. e Internet of things is widely used in various fields because of its high intelligence and diversity.…”

Section: Related Workmentioning

confidence: 99%

Security Strategy Optimization and Algorithm Based on 3D Economic Sustainable Supply Chain

Wang

Hung

Hsieh

2022

Scientific Programming

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Based on the background of system intelligence in the Internet of things era, this paper applied the design field of interaction design and user experience in the early days, and conducted further in-depth investigation through a large number of case studies and the use of quantitative and qualitative investigation methods. Based on this, the theories and strategies of the interaction design between enterprise members and intelligent machines were put forward and tested by actual design. At present, air pollution, energy shortage, and other issues are becoming more and more prominent, and calls for energy conservation, emission reduction, strengthening corporate social responsibility, and reducing the impact of economic development on the environment and society are growing. Therefore, companies must rethink their strategies and adapt their supply chains. Based on limited resources, enterprise machines have traditionally acted as a tool or a communication tool for a person. Yet, at the same time as the economy develops, the direct interaction between human and machine gradually emerges, and the economic development of an enterprise is bound to contradict environmental protection and social responsibility. Therefore, for enterprises, in different periods, different priority strategies will be adopted for the three dimensions of economy, environment, and society. The results showed that the economic benefit has increased by about 30% or more, and the ecological pollution has been reduced by about 40% on the original basis. Under the action of a sustainable supply chain, consumer satisfaction tends to be full and can be maintained at about 97%. In this context, the comparative analysis of the strategic optimization of enterprises in the supply chain is the focus of this thesis.

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Section: Related Workmentioning

confidence: 99%

Security Strategy Optimization and Algorithm Based on 3D Economic Sustainable Supply Chain

Wang

Hung

Hsieh

2022

Scientific Programming

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“…They developed a model to determine an integrated vendor-buyer inventory policy for items with imperfect quality and planned backorders. Other literatures on imperfect quality include Lin (2009), Hsu (2013) and Sana (2011).…”

Section: Jm2 181mentioning

confidence: 99%

Behavioral operations effect of fairness and unfairness concern in the decision of the supply chain production-inventory system

Chen

Sarker³

2021

JM2

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Purpose The purpose of this paper is to investigate the behavioral operations effect in production inventory decision of supply chain consisting of one manufacturer and one buyer, and analyze how the unfairness concerns impact the decision of production inventory in a supply chain system. Design/methodology/approach First, a model without the buyer’s unfairness concern is established; then, advantage unfairness concern and disadvantage unfairness concern behavior of buyer are taken into account in the production inventory system. The authors analyze how advantage unfairness concern and disadvantage unfairness concern impact the optimal decisions and channel coordination. Findings The result shows several important conclusions. First, the buyer’s optimal ordering quantity and expected utility show opposing trend when the buyer has advantage unfairness concern. Second, the stronger bargaining power of the manufacturer results in an increasing buyer’s optimal ordering quantity under the advantage unfairness concern case, but decreasing under the disadvantage unfairness concern case. Third, the supply chain production-inventory can be coordinated under advantage unfairness concern case, but cannot be coordinated under disadvantage unfairness concern. Practical implications The study can provide to practitioners with important implications that when the vendor or the buyer in supply chain wants to make the decision of inventory replenishment, taking unfairness concerns into account will lead to different results. Therefore, to effectively improve the operations performance of supply chain, partners of the supply chain should not only care about their own interest, but also need to consider the fairness concern of the other partner, reflecting the cooperation consciousness of supply chain management. Originality/value This paper contributes to the new field of creative management–behavioral operations, offering managerial implications for the decision and optimization of supply chain production-inventory problem.

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“…Huang (2002) used the approach of Salameh and Jaber (2000) to develop an optimal integrated vendor-buyer inventory policy for imperfect items in a just-in-time (JIT) manufacturing environment. Lin (2009) extended Huang ( 2004) model to present a production/inventory model with imperfect quality and screening errors. He showed that the lot size per shipment and the number of deliveries per cycle have a direct relationship with Type I screening error while they have an inverse one with Type II screening error.…”

Section: Supply Chainsmentioning

confidence: 99%

Inventory control in a two-level supply chain with learning, quality and inspection errors

Khan¹

2021

Preprint

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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.

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Optimal Policy for a Simple Supply Chain System With Defective Items and Returned Cost Under Screening Errors

Cited by 20 publications

References 22 publications

Security Strategy Optimization and Algorithm Based on 3D Economic Sustainable Supply Chain

Security Strategy Optimization and Algorithm Based on 3D Economic Sustainable Supply Chain

Behavioral operations effect of fairness and unfairness concern in the decision of the supply chain production-inventory system

Inventory control in a two-level supply chain with learning, quality and inspection errors

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