Two-echelon inventory optimization for imperfect production system under quality competition environment
type: Item
instance of: scholarly article
title: Two-echelon inventory optimization for imperfect production system under quality competition environment
zbMATH Open document ID: 1394.90029
DOI: 10.1155/2015/326919
author: Xinfeng Lai
author: Zhi-Xiang Chen
author: Chun-Hung Chiu
author: Bibhas Chandra Giri
published in: Mathematical Problems in Engineering
publication date: 2018-08-27T00:00:00Z
review text: Summary: This paper develops two integrated optimization models of two-echelon inventory for imperfect production system under quality competition environment, in which the vendor's production process is assumed to be imperfect, and JIT delivery policy is implemented to ship product from the vendor to the buyer. In the first model, product defect rate is fixed, and, in the second model, quality improvement investment is function of defect rate. The optimal policies of ordering quantity of buyer and shipment from vendor to buyer are obtained to minimize the expected annual total cost of vendor and buyer. Numerical examples are used to demonstrate the effectiveness and feasibility of the models. Sensitivity analysis is taken to analyze the impact of demand, production rate, and defect rate on the solution. Implications are highlighted in that both the vendor and the buyer can benefit from the vendor's investing in quality improvement.
Mathematics Subject Classification ID: 90B05
zbMATH DE Number: 6926073
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2015/326919
OpenAlex ID: W2063514653
Wikidata QID: Q59118037
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description: scientific article; zbMATH DE number 6926073