Joint determination of the lot size and number of shipments for a family of integrated vendor–buyer systems considering defective products

Gerardo Treviño-Garza · Krystel K. Castillo-Villar · Leopoldo Eduardo Cárdenas‐Barrón

36 citations0/0 files storedInternational Journal of Systems Science

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Supply Chain and Inventory Management Quality and Supply Management Sustainable Supply Chain Management

Abstract

In this paper we present two solution procedures to obtain the solution for a family of economic production quantity inventory models for an integrated vendor–buyer system considering that production system generates defective products, in which the number of shipments must be a discrete value and that the lot size can take continuous (case 1) or integer (case 2) values. These solution procedures provide a more realistic approach for solving a family of inventory models. Previous works only derive the optimal lot size considering the number of shipments as a given value or derive both the lot size and the number of shipments considering both decision variables as continuous. The number of shipments takes integer values in real life and thus it must be considered as a discrete variable. This paper revisits and solves previous inventory models considering the variables (lot size and number of shipments) according to their real-life nature.

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References

1986Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction 1990How Many Parts to Make at Once 2000Economic production quantity model for items with imperfect quality 1986Economic Production Cycles with Imperfect Production Processes 2010A production-inventory model of imperfect quality products in a three-layer supply chain 2010The derivation of EOQ/EPQ inventory models with two backorders costs using analytic geometry and algebra 2011Maximising profits for an EPQ model with unreliable machine and rework of random defective items 2012An improved solution to the replenishment policy for the EMQ model with rework and multiple shipments

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2023Optimization of price, lot size and backordered level in an EPQ inventory model with rework process 2015A vendor–buyer JELS model with stock-dependent demand and consigned inventory under buyer’s space constraint 2015Determining Replenishment Lot Size and Shipment Policy for an EPQ Inventory Model with Delivery and Rework 2015A new hybrid algorithm of scatter search and Nelder–Mead algorithms to optimize joint economic lot sizing problem

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