tailieunhanh - An integrated supply chain inventory model with imperfect - quality items, controllable lead time and distribution - free demand

In this paper, we consider an integrated vendor-buyer inventory policy for a continuous review model with a random number of defective items and screening process gradually at a fixed screening rate in buyer’s arriving order lot. | Yugoslav Journal of Operations Research 23 (2013), Number 1, 87-109 DOI: AN INTEGRATED SUPPLY CHAIN INVENTORY MODEL WITH IMPERFECT-QUALITY ITEMS, CONTROLLABLE LEAD TIME AND DISTRIBUTION-FREE DEMAND Hsien-Jen LIN Department of Applied Mathematics, Aletheia University, Tamsui, New Taipei City 25103 Taiwan au4409@ Received: May 2011 / Accepted: August 2012 Abstract: In this paper, we consider an integrated vendor-buyer inventory policy for a continuous review model with a random number of defective items and screening process gradually at a fixed screening rate in buyer’s arriving order lot. We assume that shortages are allowed and partially backlogged on the buyer’s side, and that the lead time demand distribution is unknown, except its first two moments. The objective is to apply the minmax distribution free approach to determine the optimal order quantity, reorder point, lead time and the number of lots delivered in one production run simultaneously so that the expected total system cost is minimized. Numerical experiments along with sensitivity analysis were performed to illustrate the effects of parameters on the decision and the total system cost. Keywords: Integrated model, minmax distribution free approach, defective items, controllable lead time. MSC: 90B05. 1. INTRODUCTION In recent years, most inventory problems have their focus on the integration between the vendor and the buyer. For supply chain management, establishing long-term strategic partnerships between the buyer and the vendor is advantageous for the two parties regarding costs, and therefore profits since both parties, to achieve improved benefits, cooperate and share information with each other. Several researchers have shown that the buyer and the vendor can achieve their own minimal total cost, or increase 88 H. J. Lin / An Integrated Supply Chain Inventory Model their mutual benefit through strategic cooperation with each other. Goyal [7] .