A production inventory model for single vendor single buyer integrated demand with multiple production setups and rework

Thiyagarajan Sekar · Ramasamy Uthayakumar

22 citations0/0 files storedUncertain Supply Chain Management

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

Abstract

In this paper, an imperfect production inventory system with multi-production run for single vendor and single buyer is studied where the defective items are reworked after several production processes and there is no break down during the rework process.The model is considered for deteriorating items under two delivery policies in order to determine the delivery policy leading to the minimum holding cost of system.The objective of this model is to determine the optimal production setup, number of deliveries and lot size by minimizing the total relevant cost of the proposed vendor-buyer integrated system.To minimize the manufacturer's and buyer's holding cost, the supply of finished products are made in small quantities.The total relevant cost of the vendor and the buyer is derived and a numerical example is presented to demonstrate the utility of the model.

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References

1986A JOINT ECONOMIC‐LOT‐SIZE MODEL FOR PURCHASER AND VENDOR 1973An EOQ Model for Items with Weibull Distribution Deterioration 1995A one-vendor multi-buyer integrated inventory model 1999The optimal production and shipment policy for the single-vendor singlebuyer integrated production-inventory problem 1967A deterministic inventory model for reparable items 2004Economic ordering quantity models for items with imperfect quality 2002An optimal ordering and recovery policy for reusable items 2014An economic production quantity model with random defective rate, rework process and backorders for a single stage production system

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2022Deterministic and Stochastic İnventory Models in Production Systems: a Review of the Literature 2022Optimization of Joint Economic Lot Size Model for Vendor‐Buyer with Exponential Quality Degradation and Transportation by Chimp Optimization Algorithm

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