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A collaborative supply chain inventory model with defective items, adjusted production rate and variable lead time

Author

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  • Wakhid Ahmad Jauhari
  • Nelita Putri Sejati
  • Cucuk Nur Rosyidi

Abstract

This paper proposes a production-inventory model for supply chain system consisting of single-vendor and single-buyer. The buyer uses periodic review policy to manage his inventory. The lead time is formulated by considering production time and transportation time. Moreover, the demand in buyer side is assumed to be normally distributed and the shortage is assumed to be fully backordered. The production process maybe deteriorated during production time hence the lot received by the buyer may contain some defective items. The defective rate of the items is assumed to be fixed. The objective of the proposed model is to determine review period, production rate and number of deliveries to minimise the joint total cost. An iterative procedure is proposed for finding the solutions of the model. A numerical example and sensitivity analysis are illustrated to show the model's behaviour.

Suggested Citation

  • Wakhid Ahmad Jauhari & Nelita Putri Sejati & Cucuk Nur Rosyidi, 2016. "A collaborative supply chain inventory model with defective items, adjusted production rate and variable lead time," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 9(6), pages 733-750.
    • Handle: RePEc:ids:ijpman:v:9:y:2016:i:6:p:733-750
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    Citations

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    Cited by:

    1. Dhahri, Akrem & Gharbi, Ali & Ouhimmou, Mustapha, 2022. "Integrated production-delivery control policy for an unreliable manufacturing system and multiple retailers," International Journal of Production Economics, Elsevier, vol. 245(C).
    2. Glock, Christoph H. & Grosse, Eric H., 2021. "The impact of controllable production rates on the performance of inventory systems: A systematic review of the literature," European Journal of Operational Research, Elsevier, vol. 288(3), pages 703-720.
    3. Wakhid Ahmad Jauhari & I Nyoman Pujawan & Mokh Suef, 2023. "Sustainable inventory management with hybrid production system and investment to reduce defects," Annals of Operations Research, Springer, vol. 324(1), pages 543-572, May.

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