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

Taleizadeh, Ata Allah; Khanbaglo, Mahboobeh Perak Sari; Cárdenas–Barrón, Leopoldo Eduardo

doi:10.1051/ro/2018099

Cited by 10 publications

(4 citation statements)

References 33 publications

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“…Pervin et al [19] initiated an inventory model with shortage under time-dependent demand and stochastic deterioration. Taleizadeh et al [33] discussed the replenishment of imperfect items in an EOQ inventory model with partial back-ordering.…”

Section: Motivation and Review On Researchmentioning

confidence: 99%

Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model

Paul

Pervin²,

Roy

et al. 2021

RAIRO-Oper. Res.

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In this paper, we formulate and solve an economic order quantity model with default risk. Our main purpose is to investigate retailer's optimal replenishment time and credit period for deteriorating items under selling price-dependent demand while maximizing profit per unit time. Here, shortages are allowed and items are partially backlogged for interested customers. We show that optimal replenishment time and credit period not only exist but they are also unique. We solve the proposed problem analytically. An algorithm is presented to derive the optimal solution of the model. The mathematical model is evaluated by numerical examples. We use Mathematica to obtain a global maximum solution to the optimal cycle time and the optimal credit period for the proposed model. A sensitivity analysis with respect to major parameters is performed in order to examine the stability of our model. At the end of the paper, conclusions are drawn and an outlook of possible future directions is depicted.

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Section: Motivation and Review On Researchmentioning

confidence: 99%

Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model

Paul

Pervin²,

Roy

et al. 2021

RAIRO-Oper. Res.

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show abstract

“…Khakzad and Gholamian [51] investigated the effect of inspection time on the deterioration rate; they showed the convexity of the model and illustrated the uniqueness of the solution. Taleizadeh et al [52] revealed an EOQ inventory model with imperfect items and partial backordering. They assumed a percent of the products in a lot is imperfect and the imperfect items are replenished by perfect ones at a higher cost.…”

Section: Literature Reviewmentioning

confidence: 99%

Inventory Models for Non-Instantaneous Deteriorating Items with Expiration Dates and Imperfect Quality under Hybrid Payment Policy in the Three-Level Supply Chain

et al. 2021

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This article considers an inventory model for non-instantaneous deteriorating items with expiration dates, such as seasonal items, first-hand vegetables, and fruits. Interestingly, an inspection will be performed to manage the quality of the items during the state of no deterioration because it is difficult to purchase items with 100% perfection. Additionally, we assume that the upstream member has the power of controlling or influencing downstream members’ decisions. That is, the supplier asks the retailer for a partial advance payment to avoid cancellation of orders and offers them a credit payment to stimulate sales; in turn, the customer must pay some cash when placing an order and pay the remainder in credit for the retailer. The goal of this article is to determine an optimal replenishment cycle and the total annual cost function, so we explore the functional properties of the total annual cost function and show that the total annual cost function is convex. Theoretical analysis of the optimal properties shows the existence and uniqueness of the optimal solution. Then, we obtain simple and easy solution procedures for the inventory system. Moreover, numerical analysis of the inventory model is conducted, and the corresponding examples are considered with a view to illustrating the application of the supply chain model that we have investigated in this article. Finally, in the concluding section, we have not only provided the motivation and the need for our usages of mathematical analytic solution procedures based upon the convexity, monotonicity (increasing and decreasing) and differentiability properties of the object function (that is, the total annual cost function), which involve some symmetry aspects of the object function, but we have also indicated the limitations and shortcomings in our investigation, which will naturally lead to some potential directions for further research on the supply chain model, which we have considered and mathematically analyzed in this article.

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“…They also formulated the optimal lot size, while the reworkable items are kept in the warehouse. Further related research is available in Taleizadeh et al (2016), Aslani et al (2017) and Taleizadeh et al (2018).…”

Section: Introductionmentioning

confidence: 99%

Economic order quantity models for the shipment containing defective items with inspection errors and a sub-lot inspection policy

Öztürk

2020

EJIE

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This paper assumes that there may be some defective items in the various lots of an ordered shipment and chooses a sub-lot inspection policy. Another assumption that this paper makes is that a shipment is sent by a distant supplier and, therefore, the replacement of the defective items is not economical if an additional order is given to the same supplier. This paper incorporates misclassification errors, which are of two types: type 1 and type 2. In order to deal with the received defective items in the shipment, two cases are discussed in this study. The first case is to send them back to the repair shop to be reworked, whereas in the second case, those defective items are sold and replaced with perfect items by buying at a higher cost from a local supplier. For each case, a mathematical model is developed, and an example is solved. The results show a close connection between the optimal order size and sample size, which can be adjusted to maximise the total profit. The results also indicate that the local purchase of replacements for defective items tends to produce greater total profit than reworking them. [

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

Cited by 10 publications

References 33 publications

Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model

Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model

Inventory Models for Non-Instantaneous Deteriorating Items with Expiration Dates and Imperfect Quality under Hybrid Payment Policy in the Three-Level Supply Chain

Economic order quantity models for the shipment containing defective items with inspection errors and a sub-lot inspection policy

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