IDEAS home Printed from https://ideas.repec.org/a/ids/ijmore/v8y2016i3p342-359.html
   My bibliography  Save this article

Integrated vendor-buyer model with defective items, inspection error and stochastic demand

Author

Listed:
  • Wakhid Ahmad Jauhari

Abstract

This paper proposes a vendor-buyer integrated production-inventory model with defective items, inspection error and stochastic demand. The lot transferred from vendor to buyer contains some defective items. The buyer conducts an inspection process to classify the quality of the items. The inspection process is imperfect. The inspector may incorrectly classify non-defective item as defective or incorrectly classify a defective item as non-defective. The lead time is assumed to be variable and consists of the sum of production time and non-productive time. In addition, transportation cost incurred by the buyer is modelled by using a tapering rate function. An iterative procedure is used to determine simultaneously shipment lot, safety factor and number of deliveries for each production run. The impact of key parameters on the proposed model is illustrated in numerical examples. The result shows that the probability of inspection error affects vendor cost, buyer cost and total cost. The probability of type I inspection error has a greater impact on total cost than that of probability of type II inspection error. In addition, the increases in both defective rate and the probability of type I inspection error lead to the increases in shipment lot and reorder point.

Suggested Citation

  • Wakhid Ahmad Jauhari, 2016. "Integrated vendor-buyer model with defective items, inspection error and stochastic demand," International Journal of Mathematics in Operational Research, Inderscience Enterprises Ltd, vol. 8(3), pages 342-359.
    • Handle: RePEc:ids:ijmore:v:8:y:2016:i:3:p:342-359
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=75520
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ivan Darma Wangsa & Hui Ming Wee & Shih-Hsien Tseng, 2019. "A coordinated vendor–buyer system considering loss and damage claims, insurance cost and stochastic lead time," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(3), pages 384-398, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmore:v:8:y:2016:i:3:p:342-359. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=320 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.