an integrated single-vendor single-buyer production-inventory model for items with imperfect quality and inspection errors

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ID: 145223
2012
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Abstract
In this paper, we develop an integrated vendor-buyer production-inventory model for items with imperfect quality and inspection errors. The production process is imperfect and produces a certain number of defective items with a known probability density function. We consider the policy in which the delivery quantity to the buyer is identical at each shipment. Once the buyer receives the lot, a 100% screening process of the lot is conducted, and the screening process and demand proceed simultaneously. The screening process is not perfect. The inspector may incorrectly classify a non-defective item as defective, or incorrectly classify a defective item as non-defective. The expected integrated total annual cost of the vendor and the buyer is derived and a solution procedure is provided to find the optimal solution. Numerical examples show that the integrated model gives an impressive cost reduction in comparison to an independent decision by the buyer.
Reference Key
hsu2012internationalan Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors ;L.F. Hsu;J.T. Hsu
Journal boletin latinoamericano y del caribe de plantas medicinales y aromaticas
Year 2012
DOI
DOI not found
URL
http://www.growingscience.com/ijiec/Vol3/IJIEC_2012_43.pdf
Keywords
operations management

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