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An Integrated Imperfect Production-Inventory Model with Lot-Size-Dependent Lead-Time and Quality Control

  • 2018
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Abstract

In this article, an integrated single-vendor single-buyer production-inventory model with stochastic demand and imperfect production process is investigated. The lead-time is assumed to be dependent on the lot-size and a fixed delay due to non-productive times. A methodology is developed to derive the optimal vendor investment required to reduce the defect rate and thereby minimize the total cost of the integrated system. Under the n-shipment policy, an algorithm is proposed so as to minimize the expected integrated total cost and determine the optimal values of the number of shipments, lot-size, safety stock factor, and percentage of defectives. Numerical results are used to illustrate the effect of various parameters on the system.

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Title
An Integrated Imperfect Production-Inventory Model with Lot-Size-Dependent Lead-Time and Quality Control
Authors
Oshmita Dey
Anindita Mukherjee
Copyright Year
2018
Publisher
Springer Singapore
DOI
https://doi.org/10.1007/978-981-10-7814-9_21
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