An integrated vendor-buyer cooperative inventory model for items with imperfect quality

Chao-Kuei Huang

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

Abstract

This article develops a model to determine an optimal integrated vendor-buyer inventory policy for flawed items in a just-in-time (JIT) manufacturing environment. The aim is to minimize the total joint annual costs incurred by the vendor and the buyer. The proposed model extends the integrated vendor-buyer inventory model by accounting for imperfect quality items. The expected annual integrated total cost function is derived and an analytic solution procedure is proposed to determine the optimal policy. Finally, numerical examples are also given to illustrate the solution procedure presented in this article.

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References

1983Production and inventory management 1986Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction 2000Economic production quantity model for items with imperfect quality 1986Economic Production Cycles with Imperfect Production Processes 1986A JOINT ECONOMIC‐LOT‐SIZE MODEL FOR PURCHASER AND VENDOR 1988“A JOINT ECONOMIC‐LOT‐SIZE MODEL FOR PURCHASER AND VENDOR”: A COMMENT*1995A one-vendor multi-buyer integrated inventory model 1997The single-vendor single-buyer integrated production-inventory model with a generalised policy

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2003A simple integrated production policy of an imperfect item for vendor and buyer 2013A bibliography of non-deterministic lot-sizing models 2013Integrated vendor–buyer supply chain model with vendor’s setup cost reduction 2003An integrated single-vendor single-buyer inventory system with shortage derived algebraically 2018Economic order quantity model for growing items with imperfect quality

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