Title :
Optimal integrated production-inventory system for defective items
Author :
Li Ying-jun ; Chen Zhi-xiang
Author_Institution :
Sch. of Bus., Sun Yat-sen Univ., Guangzhou, China
Abstract :
This article develops a single-manufacturer single-retailer production-inventory model in which the manufacturer´s production process is imperfect and it produces a random proportion of defective items in the production period. The manufacturer deliveries ordered items to the retailer with equal-sized shipments policy. The retailer performs a 100% screening process to identify the defective items immediately after receiving the order from manufacturer and handles defective items in multiple batches at the end of each shipment period. The objective is to minimize the expected average total joint annual cost of the integrated production-inventory system with optimal shipment quantity, shipment number and handling number of defective items. Finally, numerical examples are presented to illustrate the application of the proposed model.
Keywords :
inventory management; defective items handling number; equal-sized shipments policy; expected average total joint annual cost minimization; manufacturer production process; optimal integrated production-inventory system; optimal shipment quantity; screening process; shipment number; single-manufacturer single-retailer production-inventory model; Joints; Mathematical model; Numerical models; Probability density function; Supply chains; Warranties; defective items; lot sizing; production-inventory; quality;
Conference_Titel :
Management Science and Engineering (ICMSE), 2013 International Conference on
Conference_Location :
Harbin
Print_ISBN :
978-1-4799-0473-0
DOI :
10.1109/ICMSE.2013.6586348