Articlediamond2016

Two-echelon supply chain model with manufacturing quality improvement and setup cost reduction

Biswajit Sarkar · Arunava Majumder · Mitali Sarkar · Bikash Koli Dey

63 citations0/0 files storedJournal of Industrial and Management Optimization

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

Abstract

For quality improvement purposes often times, a manufacturing unit has to change certain parts of equipment. Any such changes in the assembly line manufacturing system or production process involves a cost known as the setup cost. Minimizing the setup cost and improving the product quality is of prime importance in today's competitive business arena. This paper develops the effects of setup cost reduction and quality improvement in a two-echelon supply chain model with deterioration. The objective is to minimize the total cost of the entire supply chain model (SCM) by simultaneously optimizing setup cost, process quality, number of deliveries, and lot size. Numerical examples are provided to illustrate the model.

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References

1999Inventory management and production planning and scheduling 1986Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction 1986Economic Production Cycles with Imperfect Production Processes 1986A JOINT ECONOMIC‐LOT‐SIZE MODEL FOR PURCHASER AND VENDOR 1977An integrated inventory model for a single supplier-single customer problem 1973An EOQ Model for Items with Weibull Distribution Deterioration 1991Survey of Literature on Continuously Deteriorating Inventory Models 1963A model for an exponentially decaying inventory

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