Quality improvement in an inventory model with finite-range stochastic lead times
type: Item
instance of: scholarly article
title: Quality improvement in an inventory model with finite-range stochastic lead times
zbMATH Open document ID: 1210.90010
DOI: 10.1155/JAMDS.2005.177
author: Farrokh Nasri
author: John F. Affisco
author: M. Javad Paknejad
published in: Journal of Applied Mathematics and Decision Sciences
publication date: 2008-10-23T00:00:00Z
full work available at URL: https://eudml.org/doc/117101
review text: Summary: Typically, traditional inventory models operate under the assumption of perfect quality. In this paper we modify an inventory model with finite-range stochastic lead time to allow for a random number of defective units in a lot. However, there is an extra cost for holding the defective items in the lot for the period before it is returned to the supplier. This paper also considers the option of investment to improve quality. Closed-form relationships are obtained for a quality-adjusted model as well as a quality improvement model. Numerical examples confirm that the option of investment in quality improvement results in significant cost savings. Sensitivity analysis shows that the quality improvement model is robust.
Mathematics Subject Classification ID: 90B05
Mathematics Subject Classification ID: 62N05
Mathematics Subject Classification ID: 62P20
zbMATH DE Number: 5356409
MaRDI profile type: Publication
OpenAlex ID: W2057177265
description: scientific article; zbMATH DE number 5356409