Title of article :
An integrated single-vendor single-buyer production-inventory model for items with imperfect quality and inspection errors
Author/Authors :
Hsu، J.T. نويسنده , , Hsu ، L.F. نويسنده ,
Issue Information :
دوفصلنامه با شماره پیاپی 11 سال 2012
Abstract :
In this paper, we develop an integrated vendor-buyer production-inventory model for items with imperfect quality and inspection errors. The production process is imperfect and produces a certain number of defective items with a known probability density function. We consider the policy in which the delivery quantity to the buyer is identical at each shipment. Once the buyer receives the lot, a 100% screening process of the lot is conducted, and the screening process and demand proceed simultaneously. The screening process is not perfect. The inspector may incorrectly classify a non-defective item as defective, or incorrectly classify a defective item as non-defective. The expected integrated total annual cost of the vendor and the buyer is derived and a solution procedure is provided to find the optimal solution. Numerical examples show that the integrated model gives an impressive cost reduction in comparison to an independent decision by the buyer.
Journal title :
International Journal of Industrial Engineering Computations
Journal title :
International Journal of Industrial Engineering Computations