Abstract
In this article, an integrated single-vendor single-buyer imperfect production–inventory model in which the vendor makes investment for process quality improvement and the buyer offers price discounts for backorders is studied. It is assumed that the buyer follows a continuous review policy with lot-size-dependent lead-time and a mixture of backorders and lost sales. Under the n-shipment policy, the expected annual total cost of the integrated system is derived. An algorithm is developed to determine numerically the optimal decisions of the model. A numerical example is taken to illustrate the developed model and to examine the sensitivity of the key parameters of the model. Some managerial insights are also provided.
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Further Reading
Jana, D.K., Chakraborty, D., Maiti, M.: A random fuzzy production inventory problem with backorder rate based on controllable preparation time and safety factor via genetic algorithm
Jana, D.K., Maity, K., Roy, T.K.: Multi-objective imperfect production inventory model in fuzzy rough environment via genetic algorithm
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Mukherjee, A., Dey, O., Giri, B.C. (2019). An Integrated Imperfect Production–Inventory Model with Optimal Vendor Investment and Backorder Price Discount. In: Chandra, P., Giri, D., Li, F., Kar, S., Jana, D. (eds) Information Technology and Applied Mathematics. Advances in Intelligent Systems and Computing, vol 699. Springer, Singapore. https://doi.org/10.1007/978-981-10-7590-2_14
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DOI: https://doi.org/10.1007/978-981-10-7590-2_14
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