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Imperfect Reworking Process Consideration in Integrated Inventory Model under Permissible Delay in Payments

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  • Ming-Cheng Lo
  • Ming-Feng Yang

Abstract

This study develops an improved inventory model to help the enterprises to advance their profit increasing and cost reduction in a single vendor single-buyer environment with general demand curve, adjustable production rate, and imperfect reworking process under permissible delay in payments. For advancing practical use in a real world, we are concerned with the following strategy determining, which includes the buyer's optimal selling price, order quantity, and the number of shipments per production run from the vendor to the buyer. An algorithm and numerical analysis are used to illustrate the solution procedure.

Suggested Citation

  • Ming-Cheng Lo & Ming-Feng Yang, 2008. "Imperfect Reworking Process Consideration in Integrated Inventory Model under Permissible Delay in Payments," Mathematical Problems in Engineering, Hindawi, vol. 2008, pages 1-18, June.
    • Handle: RePEc:hin:jnlmpe:386252
    DOI: 10.1155/2008/386252
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