Title :
Joint economic lot size model with quality improvement for a single supplier and a single buyer cooperative collaboration
Author :
Saraswati, D. ; Cakravastia, A. ; Iskandar, B.P. ; Halim, A.H.
Author_Institution :
Dept. of Ind. Eng., Bandung Inst. of Technol., Bandung, Indonesia
Abstract :
This paper explores the impact of quality improvement on joint economic lot size (JELS) models. It begins with the individual optimality of a supplier, which makes the deliveries during the production period, as soon as the quantity is equal to the batch size. The individual optimality of the buyer is based on the economics order quantity (EOQ) model, whereas the supplier is based on the economic manufacturing quantity (EMQ). A cooperative collaboration is stated based on a long-term agreement for sharing information. The result of the study shows that the JELS with quality improvement will provide smaller sub-lot sizes and lower joint total cost of 2.25% compares to the JELS without quality improvement. The purpose of quality improvement is to increase the proportion of conforming items. The result shows this proportion can only be improved under 0.879 and this value depends on the parameters in the investment function.
Keywords :
economics; investment; lot sizing; manufacturing industries; quality management; economic manufacturing quantity; economics order quantity model; information sharing; investment function; joint economic lot size model; quality improvement; single buyer cooperative collaboration; single supplier cooperative collaboration; Automotive engineering; Collaboration; Collaborative work; Costs; Customer service; Environmental economics; Industrial engineering; Investments; Production; Virtual manufacturing; Economic Manufacturing Quantity; Economic Order Quantity; Joint Economic Lot Size; Quality-adjusted;
Conference_Titel :
Industrial Engineering and Engineering Management, 2009. IEEM 2009. IEEE International Conference on
Conference_Location :
Hong Kong
Print_ISBN :
978-1-4244-4869-2
Electronic_ISBN :
978-1-4244-4870-8
DOI :
10.1109/IEEM.2009.5373219