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Lot sizing and unequal-sized shipment policy for an integrated production-inventory system

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  • B.C. Giri
  • S. Sharma

Abstract

This article develops a single-manufacturer single-retailer production-inventory model in which the manufacturer delivers the retailer’s ordered quantity in unequal shipments. The manufacturer’s production process is imperfect and it may produce some defective items during a production run. The retailer performs a screening process immediately after receiving the order from the manufacturer. The expected average total cost of the integrated production-inventory system is derived using renewal theory and a solution procedure is suggested to determine the optimal production and shipment policy. An extensive numerical study based on different sets of parameter values is conducted and the optimal results so obtained are analysed to examine the relative performance of the models under equal and unequal shipment policies.

Suggested Citation

  • B.C. Giri & S. Sharma, 2014. "Lot sizing and unequal-sized shipment policy for an integrated production-inventory system," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(5), pages 888-901, May.
  • Handle: RePEc:taf:tsysxx:v:45:y:2014:i:5:p:888-901
    DOI: 10.1080/00207721.2012.742595
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    References listed on IDEAS

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