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An Inventory Model with Price and Quality Dependent Demand Where Some Items Produced Are Defective

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  • Tapan Kumar Datta

Abstract

This paper analyzes an inventory system for joint determination of product quality and selling price where a fraction of items produced are defective. It is assumed that only a fraction of defective items can be repaired/reworked. The demand rate depends upon both the quality and the selling price of the product. The production rate, unit price, and carrying cost depend upon the quality of the items produced. Quality index is used to determine the quality of the product. An algorithm is provided to solve the model with given values of model parameters. Sensitivity analysis has also been performed.

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  • Tapan Kumar Datta, 2013. "An Inventory Model with Price and Quality Dependent Demand Where Some Items Produced Are Defective," Advances in Operations Research, Hindawi, vol. 2013, pages 1-8, June.
    • Handle: RePEc:hin:jnlaor:795078
    DOI: 10.1155/2013/795078
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    Cited by:

    1. Tapan Kumar Datta & Prasanta Nath & Karabi Dutta Choudhury, 2020. "A hybrid carbon policy inventory model with emission source-based green investments," OPSEARCH, Springer;Operational Research Society of India, vol. 57(1), pages 202-220, March.

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