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Improved quality, setup cost reduction, and variable backorder costs in an imperfect production process

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  • Sarkar, Biswajit
  • Moon, Ilkyeong

Abstract

This paper illustrates the relationship between quality improvement, reorder point, and lead time, as affected by backorder rate, in an imperfect production process. To reduce the total system cost by optimizing the setup cost, lot size, lead time, reorder point, and process quality parameter simultaneously, we first consider that the lead time demand follows a normal distribution, then we apply the distribution free approach for the lead time demand. We prove two lemmas which are used to find optimal solutions for the basic and distribution free models. We compare our models with the existing models using numerical examples and show that significant savings over the existing models can be achieved.

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  • Sarkar, Biswajit & Moon, Ilkyeong, 2014. "Improved quality, setup cost reduction, and variable backorder costs in an imperfect production process," International Journal of Production Economics, Elsevier, vol. 155(C), pages 204-213.
    • Handle: RePEc:eee:proeco:v:155:y:2014:i:c:p:204-213
    DOI: 10.1016/j.ijpe.2013.11.014
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    Cited by:

    1. Shaktipada Bhuniya & Biswajit Sarkar & Sarla Pareek, 2019. "Multi-Product Production System with the Reduced Failure Rate and the Optimum Energy Consumption under Variable Demand," Mathematics, MDPI, vol. 7(5), pages 1-20, May.
    2. Biswajit Sarkar & Muhammad Tayyab & Seok-Beom Choi, 2018. "Product Channeling in an O2O Supply Chain Management as Power Transmission in Electric Power Distribution Systems," Mathematics, MDPI, vol. 7(1), pages 1-12, December.
    3. Muhammad Tayyab & Biswajit Sarkar & Misbah Ullah, 2018. "Sustainable Lot Size in a Multistage Lean-Green Manufacturing Process under Uncertainty," Mathematics, MDPI, vol. 7(1), pages 1-18, December.
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    5. Sarkar, Biswajit & Saren, Sharmila, 2016. "Product inspection policy for an imperfect production system with inspection errors and warranty cost," European Journal of Operational Research, Elsevier, vol. 248(1), pages 263-271.
    6. Biswajit Sarkar & Sharmila Saren & Mitali Sarkar & Yong Won Seo, 2016. "A Stackelberg Game Approach in an Integrated Inventory Model with Carbon-Emission and Setup Cost Reduction," Sustainability, MDPI, vol. 8(12), pages 1-23, December.
    7. Umakanta Mishra & Jei-Zheng Wu & Anthony Shun Fung Chiu, 2019. "Effects of Carbon-Emission and Setup Cost Reduction in a Sustainable Electrical Energy Supply Chain Inventory System," Energies, MDPI, vol. 12(7), pages 1-18, March.
    8. R. Uthayakumar & B. Karthick, 2023. "Analysis of several reduction strategies on a two-echelon sustainable supply chain model with triangular fuzzy demand," OPSEARCH, Springer;Operational Research Society of India, vol. 60(1), pages 393-419, March.
    9. R. Udayakumar & S. Priyan & Mandeep Mittal & Anuwat Jirawattanapanit & Grienggrai Rajchakit & Pramet Kaewmesri, 2022. "A Sustainable Production Scheduling with Backorders under Different Forms of Rework Process and Green Investment," Sustainability, MDPI, vol. 14(24), pages 1-38, December.
    10. Tufail Habib & Muhammad Omair & Muhammad Salman Habib & Muhammad Zeeshan Zahir & Sikandar Bilal Khattak & Se-Jin Yook & Muhammad Aamir & Rehman Akhtar, 2023. "Modular Product Architecture for Sustainable Flexible Manufacturing in Industry 4.0: The Case of 3D Printer and Electric Toothbrush," Sustainability, MDPI, vol. 15(2), pages 1-29, January.
    11. Sinisterra, Wilfrido Quiñones & Cavalcante, Cristiano Alexandre Virgínio, 2020. "An integrated model of production scheduling and inspection planning for resumable jobs," International Journal of Production Economics, Elsevier, vol. 227(C).
    12. Yong Zhang & Xingyu Yang & Weiguo Zhang & Weiwei Chen, 2020. "Online ordering rules for the multi-period newsvendor problem with quantity discounts," Annals of Operations Research, Springer, vol. 288(1), pages 495-524, May.
    13. Muhammad Omair & Biswajit Sarkar & Leopoldo Eduardo Cárdenas-Barrón, 2017. "Minimum Quantity Lubrication and Carbon Footprint: A Step towards Sustainability," Sustainability, MDPI, vol. 9(5), pages 1-18, April.
    14. Pourmohammad Zia, Nadia & Taleizadeh, Ata Allah, 2015. "A lot-sizing model with backordering under hybrid linked-to-order multiple advance payments and delayed payment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 19-37.
    15. Golmohammadi, Amirmohsen & Taghavi, Majid & Farivar, Samira & Azad, Nader, 2018. "Three strategies for engaging a buyer in supplier development efforts," International Journal of Production Economics, Elsevier, vol. 206(C), pages 1-14.
    16. Sarkar, Biswajit & Sarkar, Mitali & Ganguly, Baishakhi & Cárdenas-Barrón, Leopoldo Eduardo, 2021. "Combined effects of carbon emission and production quality improvement for fixed lifetime products in a sustainable supply chain management," International Journal of Production Economics, Elsevier, vol. 231(C).
    17. Gong, Qiguo & Chen, Guohui & Zhang, Wen & Wang, Hui, 2022. "The role of humans in flexible smart factories," International Journal of Production Economics, Elsevier, vol. 254(C).
    18. Muhammad Tayyab & Biswajit Sarkar & Bernardo Nugroho Yahya, 2018. "Imperfect Multi-Stage Lean Manufacturing System with Rework under Fuzzy Demand," Mathematics, MDPI, vol. 7(1), pages 1-18, December.
    19. Florian Johannsen & Hans-Georg Fill, 2017. "Meta Modeling for Business Process Improvement," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 59(4), pages 251-275, August.
    20. Naoufel Cheikhrouhou & Biswajit Sarkar & Baishakhi Ganguly & Asif Iqbal Malik & Rafael Batista & Young Hae Lee, 2018. "Optimization of sample size and order size in an inventory model with quality inspection and return of defective items," Annals of Operations Research, Springer, vol. 271(2), pages 445-467, December.
    21. Barun Khara & Jayanta Kumar Dey & Shyamal Kumar Mondal, 2021. "An integrated imperfect production system with advertisement dependent demand using branch and bound technique," Flexible Services and Manufacturing Journal, Springer, vol. 33(2), pages 508-546, June.
    22. Tiwari, Sunil & Kazemi, Nima & Modak, Nikunja Mohan & Cárdenas-Barrón, Leopoldo Eduardo & Sarkar, Sumon, 2020. "The effect of human errors on an integrated stochastic supply chain model with setup cost reduction and backorder price discount," International Journal of Production Economics, Elsevier, vol. 226(C).
    23. Bikash Koli Dey & Biswajit Sarkar & Sarla Pareek, 2019. "A Two-Echelon Supply Chain Management With Setup Time and Cost Reduction, Quality Improvement and Variable Production Rate," Mathematics, MDPI, vol. 7(4), pages 1-25, April.

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