IDEAS home Printed from https://ideas.repec.org/a/spr/topjnl/v23y2015i2p535-551.html
   My bibliography  Save this article

An imperfect quality economic order quantity with advanced receiving

Author

Listed:
  • Tien-Yu Lin
  • Kuo-Lung Hou

    ()

Abstract

Differing from previous studies on economic order quantity model with imperfect quality, this paper assumes that a lot received contains either good, re-workable, or scrap items where the re-workable items are stored at a warehouse until a subsequent lot arrives and then these are sent back to the supplier to rework. We propose an imperfect quality inventory model with overlapped and advanced receiving in which the supplier provides a discount rate of procurement cost to compensate the buyer for the additional holding cost and maintain a cooperative relationship. As we expected, a lot sizing policy with overlapped and advanced receiving is developed to generalize the current literature models. It should be noted that the classical EOQ model and Maddah et al’s work (Comput Ind Eng 58:691–695, 2010 ) are two special cases of our model. A numerical example is given to illustrate the proposed model. In addition, a sensitivity analysis is made to investigate the effects of five important parameters on the optimal lot size and the expected total profit per cycle. Managerial insights are also presented. Copyright Sociedad de Estadística e Investigación Operativa 2015

Suggested Citation

  • Tien-Yu Lin & Kuo-Lung Hou, 2015. "An imperfect quality economic order quantity with advanced receiving," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 23(2), pages 535-551, July.
  • Handle: RePEc:spr:topjnl:v:23:y:2015:i:2:p:535-551
    DOI: 10.1007/s11750-014-0352-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11750-014-0352-x
    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.

    References listed on IDEAS

    as
    1. Huang, Chao-Kuei, 2004. "An optimal policy for a single-vendor single-buyer integrated production-inventory problem with process unreliability consideration," International Journal of Production Economics, Elsevier, vol. 91(1), pages 91-98, September.
    2. Papachristos, S. & Konstantaras, I., 2006. "Economic ordering quantity models for items with imperfect quality," International Journal of Production Economics, Elsevier, vol. 100(1), pages 148-154, March.
    3. Liang-Yuh Ouyang & Cheng-Ju Chuang & Chia-Huei Ho & Chien-Wei Wu, 2014. "An integrated inventory model with quality improvement and two-part credit policy," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(3), pages 1042-1061, October.
    4. Burwell, Timothy H. & Dave, Dinesh S. & Fitzpatrick, Kathy E. & Roy, Melvin R., 1997. "Economic lot size model for price-dependent demand under quantity and freight discounts," International Journal of Production Economics, Elsevier, vol. 48(2), pages 141-155, January.
    5. Jaber, M.Y. & Goyal, S.K. & Imran, M., 2008. "Economic production quantity model for items with imperfect quality subject to learning effects," International Journal of Production Economics, Elsevier, vol. 115(1), pages 143-150, September.
    6. Khan, M. & Jaber, M.Y. & Wahab, M.I.M., 2010. "Economic order quantity model for items with imperfect quality with learning in inspection," International Journal of Production Economics, Elsevier, vol. 124(1), pages 87-96, March.
    7. Salameh, M. K. & Jaber, M. Y., 2000. "Economic production quantity model for items with imperfect quality," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 59-64, March.
    8. Maddah, Bacel & Jaber, Mohamad Y., 2008. "Economic order quantity for items with imperfect quality: Revisited," International Journal of Production Economics, Elsevier, vol. 112(2), pages 808-815, April.
    9. Chung, Kun-Jen, 2008. "A necessary and sufficient condition for the existence of the optimal solution of a single-vendor single-buyer integrated production-inventory model with process unreliability consideration," International Journal of Production Economics, Elsevier, vol. 113(1), pages 269-274, May.
    10. Goyal, Suresh Kumar & Cardenas-Barron, Leopoldo Eduardo, 2002. "Note on: Economic production quantity model for items with imperfect quality - a practical approach," International Journal of Production Economics, Elsevier, vol. 77(1), pages 85-87, May.
    11. Percy H. Brill & Ben A. Chaouch, 1995. "An EOQ Model with Random Variations in Demand," Management Science, INFORMS, vol. 41(5), pages 927-936, May.
    12. Wee, H.M. & Yu, Jonas & Chen, M.C., 2007. "Optimal inventory model for items with imperfect quality and shortage backordering," Omega, Elsevier, vol. 35(1), pages 7-11, February.
    13. Sana, Shib Sankar, 2013. "Sales team's initiatives and stock sensitive demand — A production control policy," Economic Modelling, Elsevier, vol. 31(C), pages 783-788.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khan, M. & Jaber, M.Y. & Guiffrida, A.L. & Zolfaghari, S., 2011. "A review of the extensions of a modified EOQ model for imperfect quality items," International Journal of Production Economics, Elsevier, vol. 132(1), pages 1-12, July.
    2. 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.
    3. Khan, M. & Jaber, M.Y. & Wahab, M.I.M., 2010. "Economic order quantity model for items with imperfect quality with learning in inspection," International Journal of Production Economics, Elsevier, vol. 124(1), pages 87-96, March.
    4. Anuraag Gutgutia & J. K. Jha, 2018. "A closed-form solution for the distribution free continuous review integrated inventory model," Operational Research, Springer, vol. 18(1), pages 159-186, April.
    5. Taleizadeh, Ata Allah & Khanbaglo, Mahboobeh Perak Sari & Cárdenas-Barrón, Leopoldo Eduardo, 2016. "An EOQ inventory model with partial backordering and reparation of imperfect products," International Journal of Production Economics, Elsevier, vol. 182(C), pages 418-434.
    6. Rezaei, Jafar & Salimi, Negin, 2012. "Economic order quantity and purchasing price for items with imperfect quality when inspection shifts from buyer to supplier," International Journal of Production Economics, Elsevier, vol. 137(1), pages 11-18.
    7. Skouri, K. & Konstantaras, I. & Lagodimos, A.G. & Papachristos, S., 2014. "An EOQ model with backorders and rejection of defective supply batches," International Journal of Production Economics, Elsevier, vol. 155(C), pages 148-154.
    8. Chang, Hung-Chi & Ho, Chia-Huei, 2010. "Exact closed-form solutions for "optimal inventory model for items with imperfect quality and shortage backordering"," Omega, Elsevier, vol. 38(3-4), pages 233-237, June.
    9. Lie-Fern Hsu & Jia-Tzer Hsu, 2016. "Economic production quantity (EPQ) models under an imperfect production process with shortages backordered," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(4), pages 852-867, March.
    10. Hsu, Jia-Tzer & Hsu, Lie-Fern, 2013. "An EOQ model with imperfect quality items, inspection errors, shortage backordering, and sales returns," International Journal of Production Economics, Elsevier, vol. 143(1), pages 162-170.
    11. Sher, Mikhail M. & Kim, Seung-Lae & Banerjee, Avijit & Paz, Michael T., 2018. "A supply chain coordination mechanism for common items subject to failure in the electronics, defense, and medical industries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 164-173.
    12. Yoo, Seung Ho & Kim, DaeSoo & Park, Myung-Sub, 2009. "Economic production quantity model with imperfect-quality items, two-way imperfect inspection and sales return," International Journal of Production Economics, Elsevier, vol. 121(1), pages 255-265, September.
    13. Nasr, Walid W. & Maddah, Bacel & Salameh, Moueen K., 2013. "EOQ with a correlated binomial supply," International Journal of Production Economics, Elsevier, vol. 144(1), pages 248-255.
    14. Tapan Kumar Datta, 2017. "Inventory system with defective products and investment opportunity for reducing defective proportion," Operational Research, Springer, vol. 17(1), pages 297-312, April.
    15. Maddah, Bacel & Jaber, Mohamad Y., 2008. "Economic order quantity for items with imperfect quality: Revisited," International Journal of Production Economics, Elsevier, vol. 112(2), pages 808-815, April.
    16. Kevin Hsu, Wen-Kai & Yu, Hong-Fwu, 2009. "EOQ model for imperfective items under a one-time-only discount," Omega, Elsevier, vol. 37(5), pages 1018-1026, October.
    17. Maddah, Bacel & Moussawi, Lama & Jaber, Mohamad Y., 2010. "Lot sizing with a Markov production process and imperfect items scrapped," International Journal of Production Economics, Elsevier, vol. 124(2), pages 340-347, April.
    18. Nasr, Walid W. & Jaber, Mohamad Y., 2019. "Supplier development in a two-level lot sizing problem with non-conforming items and learning," International Journal of Production Economics, Elsevier, vol. 216(C), pages 349-363.
    19. Sebatjane, Makoena & Adetunji, Olufemi, 2019. "Economic order quantity model for growing items with imperfect quality," Operations Research Perspectives, Elsevier, vol. 6(C).
    20. Yassine, Ali & Maddah, Bacel & Salameh, Moueen, 2012. "Disaggregation and consolidation of imperfect quality shipments in an extended EPQ model," International Journal of Production Economics, Elsevier, vol. 135(1), pages 345-352.

    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:spr:topjnl:v:23:y:2015:i:2:p:535-551. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.springer.com .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.